PAGA Reformed: Draft Legislation Shows Way Forward For California Employers
Highlights
New California's Private Attorneys General Act (PAGA) reform legislation represents compromise between labor and business leaders brokered by Gov. Gavin Newsom
Proposed legislation addresses standing and manageability, caps certain penalties, provides greater ability to cure alleged violations, and offers avenues for early resolution, among other things
If passed, the legislation will apply to civil actions filed after June 19, 2024
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the legislation is passed and signed into law, the PAGA ballot initiative set for the November election will be withdrawn.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.
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