PAGA Reformed: Draft Legislation Shows Way Forward For California Employers

After two decades and billions of dollars in penalties, on June 18 California Gov. Gavin Newsom, various labor and business groups, and legislative leadership reached a compromise agreement to reform California's Private Attorneys General Act (PAGA). The two pieces of legislation were proposed on June 21 – AB 2288 amends Labor Code Section 2699 and SB 92 amends Section 2699.3. Assuming the legislation is passed and signed into law, the PAGA ballot initiative set for the November election will be withdrawn. If passed, the amendments will apply, with some exceptions, to civil actions brought on or after June 19, 2024.