Under California’s Private Attorneys General Act (PAGA), an “aggrieved employee” may bring a representative action on behalf of him or herself and other “aggrieved employees” for civil penalties for various violations of the California Labor Code. (Labor Code §§2698, et seq.)  PAGA cases have become increasingly more frequent for various reasons, including the fact that PAGA claims cannot currently be compelled to arbitration.

Several business organizations joined together in October 2021 to file a proposed proposition with the California Attorney General entitled “Californians For Fair Pay and Employer Accountability Act”, which seeks to repeal PAGA.  California’s Secretary of State recently approved the circulation of the PAGA reform petition for signatures. Supporters of the initiative have until June 6, 2022, to collect at least 623, 212 valid signatures to qualify the measure for the November 2022 general election. Assuming all required signatures are valid, the Proposition would be voted upon by the general public in November 2022.

If approved by California voters, the Proposition would repeal PAGA and eliminate the Labor Commissioner’s authority to contract with private organizations or attorneys to assist with enforcement actions.  Instead, the proposition proposes that the California Legislature provide funding for the Labor Commissioner to enforce Labor Code violations. Moreover, the California Labor Commissioner would be required to provide pre-enforcement advice and allow employers to cure alleged violations without penalties. However, the petition also proposes increased penalties for willful violations of the Labor Code.

Jackson Lewis continues to track legislation and changes in California employment law affecting employers. If you have questions about the proposed reforms to PAGA or related issues, please contact a Jackson Lewis attorney to discuss.

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Photo of Cary G. Palmer Cary G. Palmer

Cary G. Palmer is a principal in the Sacramento, California, office of Jackson Lewis P.C. He represents management in employment, labor and benefits law and related litigation. Cary has extensive class action experience. He also mediates class actions.

Cary practices before the state…

Cary G. Palmer is a principal in the Sacramento, California, office of Jackson Lewis P.C. He represents management in employment, labor and benefits law and related litigation. Cary has extensive class action experience. He also mediates class actions.

Cary practices before the state and federal courts in California, the United States Department of Labor, the United States Equal Opportunity Commission, the California Civil Rights Department, the California Division of Labor Standards Enforcement, and the California Workers’ Compensation Appeals Board. He also defends management in statewide and nationwide class action and collective action litigation. Cary also defends management in litigation involving wrongful termination, reductions in force, discrimination, harassment, breach of contract, wage and hour, benefits, and other labor and employment-related actions. He also conducts employee and management training seminars, and provides proactive employment advice and counsel.