PAGA

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In Lawson v. ZB, N.A. (2018) 18 Cal.App.5th 705, California’s Fourth District Court of Appeal recently ruled that the two elements comprising damages under Labor Code § 558 – (a) underpaid wages and (b) denominated assessments – are indivisible. Because a claim under Labor Code § 558 is indivisible and it is a civil penalty…

In Kim v. Reins International California, Inc. (B278642, Cal. Ct. App., December 29, 2017), the Court of Appeal for the Second Appellate District addressed for the first time the question of whether an employee-plaintiff, who had settled and dismissed his individual claims under the Labor Code against his employer, was able to maintain a…

Emphasizing the broad right of discovery and the remedial nature of the California Private Attorneys General Act of 2004, the California Supreme Court has ruled that, in pretrial discovery, plaintiffs under PAGA has a right to employer records containing other employees’ names and contact information. Williams v. Marshalls of California, LLC, No. S227228 (July…

On March 3, 2017, in an unpublished decision in Valdez v. Terminix International Company Limited Partnership, Case No.15-56236, the U.S. Court of Appeals for the Ninth Circuit reversed a District Court order denying defendant Terminix International Company Limited Partnership’s (Terminix) motion to compel arbitration of plaintiff Palcido Valdez’s (Valdez) claim for penalties for violation…

On September 7, 2016, the Ninth Circuit Court of Appeals in Mohamed v. Uber Technologies, Inc. largely overturned the District Court’s ruling which had held Uber’s arbitration agreements to be unenforceable.  Last year, the District Court had held that the arbitration agreements were unconscionable due to the inclusion of a waiver of claims brought under…

We previously reported on Governor Brown’s 2016/2017 budget change proposal as something employers should monitor.[1]  The proposal included increased funding for the Labor & Workforce Development Agency (“LWDA”), the agency responsible for overseeing the Private Attorneys General Act of 2004 (“PAGA”).  The budget proposal also contained recommendations for widespread changes to the way PAGA…

On January 7, 2016, Governor Brown’s office submitted a 22-page Budget Change Proposal for 2016-2017 (http://web1a.esd.dof.ca.gov/Documents/bcp/1617/FY1617_ORG7350_BCP474.pdf) in an effort to “stabilize and improve the handling of Private Attorneys General Act cases.”

Background

Enacted in 2003, the Private Attorneys General Act (PAGA) enables private parties to recover penalties for certain Labor Code violations that could previously only be pursued by the Labor Commissioner or other divisions within California’s Department of Industrial Relations (DIR). Following a 2004 amendment, PAGA requires employees or their representatives to initiate a case by first sending written notice to the employer and the Labor and Workforce Development Agency (LWDA) identifying the alleged violations and setting forth specific supporting facts. 
Continue Reading State Budget Proposal Seeks to Reduce PAGA Litigation Through Increased State Oversight

The budget change proposal for the 2016/17 Fiscal Year [document: <http://web1a.esd.dof.ca.gov/Documents/bcp/1617/FY1617_ORG7350_BCP474.pdf>] submitted by Governor Brown last month contains significant proposed changes to the operation of the Labor & Workforce Development Agency (“LWDA”), the agency responsible for overseeing the Private Attorney Generals Act of 2004 (“PAGA”)   including the creation of a “PAGA Unit” with the authority to intervene and object to the adequacy of the settlement funds designated to PAGA claims. The budget requests a $1.6 million increase to the operation budget to cover additional staffing needs for the agency and an additional $1.5 million going forward to “stabilize and improve the handling of PAGA cases.”  The budget proposal justifies the request for additional resources to increase the LWDA’s effectiveness.
Continue Reading Governor Brown’s Proposed PAGA Unit May Have Power to Challenge PAGA Settlement in Court