California Governor Gavin Newsom signed two bills on July 1, 2024, aimed at reforming the Private Attorneys General Act of 2004 (PAGA), marking a significant overhaul in labor law enforcement in the state.
According to Governor Newsom, these reforms represent a culmination of decades-long efforts to balance worker protections with operational ease for businesses.
The newly enacted Assembly Bill (AB) 2288 and Senate Bill (SB) 92 introduce several key changes to PAGA, allowing workers to pursue legal action against employers for violations of the California Labor Code.
Among the reforms, the legislation imposes capped penalties on employers who swiftly rectify violations upon receiving a PAGA notice, as well as those who proactively ensure compliance before any notice is issued.
Under the new laws, employees can only file PAGA claims for Labor Code violations they have personally experienced within the statute of limitations.
This provision prevents individuals from suing on behalf of others allegedly harmed, enhancing the specificity and personal stake required for legal action.
Moreover, the reforms escalate penalties for employers found to have acted maliciously, fraudulently, or oppressively in violating state labor laws.
They also increase the share of penalty money allocated to employees from 25% to 35%, with the remainder going to California’s Labor and Workforce Development Agency (LWDA).
Additionally, the legislation strengthens the right to cure process, facilitating quicker resolutions and reducing litigation costs.
Courts now have the authority to streamline case management by limiting the scope of claims during trial, ensuring more manageable proceedings.
Furthermore, the reforms grant courts the power to enforce workplace changes through injunctive relief, compelling businesses to implement necessary corrections to address violations promptly.
To support effective enforcement, the California Department of Industrial Relations (DIR) gains expedited hiring capabilities to fill vacancies swiftly and bolster timely labor law enforcement.
These reforms are not retroactive and apply only to PAGA notices submitted on or after June 19, 2024.
In response to the legislative changes, proponents of a statewide ballot initiative seeking to repeal PAGA withdrew their measure, no longer pursuing it for the November election.
The overhaul of PAGA marks a significant step in California’s labor law landscape, aiming to balance accountability for employers with streamlined legal processes and enhanced protections for workers.
