Understanding the 2024 PAGA Reform

The Private Attorneys General Act (PAGA) has been a pivotal element in California’s wage & hour labor law landscape, allowing employees to sue employers for labor code violations on behalf of themselves and other employees. However, recent PAGA reforms (AB 2288 and SB92) have ignited debates around their impact on workers’ rights and employer responsibilities. These changes aim to address employer concerns about abuse of the system, while also maintaining strong protections for employees. The PAGA reform was effective immediately and applies to cases filed after June 19, 2024.

Since the reform was signed, a PAGA plaintiff must now have “personally suffered” the alleged violation. Previously, an employee or past employee could bring forth a case on behalf of any and/or all employees, whether they suffered the violation or not. There has also been a change in the length of time an employee or past employee can bring forth a PAGA claim – previously 5 years, this has now been reduced to a one-year statute of limitations.

A ”good faith” clause has been introduced to support the employer stance should a case be presented. The reform also expanded employer opportunities to avoid or limit penalties. Previously, PAGA had narrow possibilities for employers to cure violations to avoid litigation. In addition to these new cure provisions, the reform has placed maximum penalty caps for employers that are taking “all reasonable steps” to align with compliance.

One of the primary objectives of the PAGA reform is to streamline the process of filing claims. The reforms introduce stricter requirements for the submission of PAGA notices, requiring clearer evidence of labor code violations and limiting the types of claims that can be brought forth. Supporters argue that these changes will minimize excessive lawsuits and reduce the burden on employers. On the flip side, critics worry that the reforms may undermine the original intent of PAGA, potentially weakening protections for workers who may not have the resources to navigate a more complicated legal landscape.

As these reforms take effect, the balance between protecting workers and ensuring fair business practices remains a critical topic of discussion. Employers must now adapt to the new requirements while staying compliant with labor laws. For employees, understanding these changes is essential, as they may influence their ability to seek justice for workplace violations. The ongoing dialogue around PAGA reform underscores the need for a fair and equitable approach to labor rights, ensuring that both workers and employers can thrive.

Resources:

Governor Newsom signs PAGA reform | Governor of California

California Overhauls Private Attorneys General Act – Jackson Lewis

California Enacts Sweeping Changes to PAGA // Cooley // Global Law Firm

PAGA Reform: Everything You Need To Know

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