The Private Attorneys General Act (PAGA) has been in the news lately with a proposed state Proposition seeking to reform it, and the Supreme Court taking up a case regarding PAGA and arbitrations. Though recent developments give hope to employers that some limitations will be placed on PAGA claims, the filing of PAGA
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Private Attorneys General Act Round-Up for 2020
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
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Newsom Signs Law Increasing Penalties Available to Workers
On October 10, 2019, Governor Gavin Newsom signed AB 673 into law, expanding an employee’s right to collect penalties for an employer’s failure to timely pay wages.
Prior to the enactment of AB 673, Labor Code section 210 provided a penalty that was directly recoverable by the Labor Commissioner or by an employee authorized to…
Plaintiffs Cannot Bring PAGA Claims If They Fail to Give Notice of a Representative Action
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…
State Budget Proposal Seeks to Reduce PAGA Litigation Through Increased State Oversight
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