On June 18, 2024, Governor Newsom announced a compromise to reform California’s Private Attorneys General Act (PAGA). This announcement follows intense negotiations prompted by a looming ballot measure to repeal PAGA this November. With PAGA cases skyrocketing and average settlements reaching $1.1 million, this reform package introduces crucial changes for California employers. Attorneys Anne McWilliams and Yaron Tilles join me to discuss how this will be impacting employers across the state:

The reform will likely address the following items (as discussed in the video above):

  1. Employee share of the PAGA penalty
  2. The standing requirements for employees to bring PAGA cases
  3. Caps on the amounts of penalties that employees can recover under PAGA cases
  4. Employers right to cure defects to reduce or eliminate potential penalties
  5. Providing trial courts with discretion to manage PAGA claims during trial

As of Friday, June 21, 2024, the text of the bill to reform PAGA has not been released yet. It is expected to be published as early as late on June 21 or over the weekend. Stay tuned for our analysis of the text of the bill once that becomes available.