On June 18, 2024, Governor Newsom announced a deal had been reached with the legislature and business groups to reform California’s Private Attorneys General Act (PAGA).

The agreement apparently comes after several months of negotiations between various business groups that had been pushing forward a ballot measure to repeal PAGA and labor advocates.

The following

2020 presented a myriad of challenges for California employers, including the constant march of California court opinions regarding the Private Attorneys General Act (PAGA) claims.

The California courts focused on two issues involving PAGA this year:

  • Can a Plaintiff proceed with their PAGA claim (standing)?
  • Can a Defendant compel arbitration when there is a PAGA

In Hamid H. Khan v. Dunn-Edwards Corporation (January 4, 2018), the California Court of Appeal for the Second Appellate District held that the plaintiff failed to comply with required administrative procedures prior to bringing a claim under the California Private Attorneys General Act (“PAGA”) because he failed to provide sufficient notice to the California Labor

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