Historic PAGA Reform Signed by Governor Newsom Agreement Between Business, Community and Labor Groups Will Create a Better, Fairer System for Workers and Employers Sacramento – Today, the Fix PAGA coalition, representing non-profits, social justice advocates, family farmers, health care providers and businesses, applauded Governor Newsom and legislators for enacting historic reform to the Private Attorneys General Act (PAGA). Governor Newsom signed the two PAGA reform bills today – Senate Bill 92 (Umberg) and Assembly Bill 2288 (Kalra). “The reforms will have a tremendous positive impact on California employers while preserving strong labor protections for employees,” said Jennifer Barrera, President & CEO, California Chamber of Commerce. “We are proud to help deliver this meaningful reform to minimize egregious shakedown lawsuits against employers. We thank Governor Newsom, Senate President pro Tempore McGuire, Assembly Speaker Rivas and all legislators for passing this historic agreement.” Taken together, the two bills reform PAGA to ensure workers retain a strong tool to resolve labor claims and receive fair compensation, while limiting the shakedown lawsuits that hurt employers and employees. “PAGA has been broken for decades,” said Brian Maas, President, California New Car Dealers Association and proponent of the PAGA reform initiative that is eligible for the November ballot. “This reform package addresses the major problems in the law while also protecting workers. We applaud the legislature for passing these reforms and Governor Newsom for getting the agreement over the finish line. Knowing Governor Newsom would sign the bills today, we withdrew our ballot measure last week.” A recent report found that since 2013 there have been nearly $10 billion in PAGA court case awards, but due to significant attorney fees, workers receive only a small portion of these awards. PAGA hurts virtually every industry and employer in California, including non-profits, local governments, family-run businesses and others. The core elements of the reform package are:
“Small businesses throughout the state have been targeted by frivolous PAGA lawsuits for decades, even forcing some restaurants to shut down,” said Jot Condie, President & CEO, California Restaurant Association. “This is strong reform that will help small businesses and we are proud to help make it happen.” “The abusive litigation that PAGA has allowed has contributed to the loss of small family farms and the movement of agricultural production away from California. We applaud Governor Newsom for shepherding this important reform effort and the legislature for passing it,” said Dave Puglia, President & CEO, Western Growers Association. |