At the end of 2021, the California Secretary of State approved a proposition to reform California’s Private Attorneys General Act (PAGA) by collecting signatures for the November 2022 ballot. The Secretary of State recently announced that the California Fair Pay and Employer Accountability Act has qualified for the 2024 ballot, with nearly 1 million signatures submitted in support of PAGA reform.

The proposition seeks to repeal PAGA and eliminate the Labor Commissioner’s authority to contract with private organizations or attorneys to assist with enforcement actions. The proposition proposes instead that the state provide more funding to the Labor Commissioner to enforce Labor Code violations.

PAGA’s scope was limited in 2022 by the Supreme Court decision in Viking River Cruises v. Moriana. However, the California Secretary of State approved the proposition for the November 2024 ballot.

In the meantime, several state challenges are proceeding through California appellate courts regarding how PAGA cases are administered. A petition for rehearing is also pending before the Supreme Court for Viking River Cruises, which is expected to be summarily denied.

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.