Legislative Approval and Reforms
The California Legislature approved bills on Thursday to amend a 20-year-old law, the Private Attorneys General Act (PAGA), which allows workers to sue their employers over labor violations. This legislative action aims to address concerns from business groups about the misuse of the law and the high costs and lengthy processes involved in litigating alleged violations.
Key Changes to the Private Attorneys General Act
The new legislation will introduce several significant reforms to PAGA:
- Lower Financial Penalties: The bills will reduce the financial penalties for some employers while compelling them to correct violations.
- Corrective Measures: Businesses with fewer than 100 employees will be granted the right to correct violations, and larger businesses can request an early evaluation of alleged violations.
- Revised Penalties: Penalties for less serious labor law violations will be lowered, while penalties for more serious violations will be increased.
These reforms emerged from a compromise between Governor Gavin Newsom, lawmakers, business groups, and labor leaders to avoid a ballot measure aimed at repealing and replacing PAGA.
Governor Newsom’s Support
Governor Gavin Newsom, a Democrat, has expressed strong support for the compromise, highlighting it in his State of the State address as a significant achievement. “We accomplished something that was seemingly impossible,” Newsom stated. “It’s easier to address simple problems, but that’s not the California way.”
Newsom has confirmed he will sign the bills into law, which will take effect immediately.
Unanimous Legislative Approval
Both the state Senate and Assembly passed the proposals unanimously. The legislative package aims to balance the interests of workers and employers, ensuring worker protection while addressing concerns about the law’s implementation.
Distribution of Fines
Under the original 2004 law, employers found in violation of California’s labor code were required to pay fines, with 25% of the money going to workers and the remainder to the Labor and Workforce Development Agency for enforcement and education. The new legislation will increase the portion allocated to affected workers to 35%.
