On June 18, 2024, Governor Newsom announced that a compromise had been reached to reform California’s Private Attorneys General Act (PAGA). The negotiations were brought about by a ballot measure to repeal PAGA this November. PAGA cases have been increasing astronomically against California employers, exposing them to huge penalties, and on average PAGA cases
PAGA
Action Items After Being Named In A PAGA or Class Action Wage And Hour Lawsuit
Being named as a defendant in a Private Attorneys General Act (PAGA) or class action lawsuit can be overwhelming, especially for a quickly growing company. However, with planning, a company can minimize the impact of the litigation on its existing operations and put forth the best defense.
A lawyer who has experience in employment law…
California Supreme Court Holds Trial Courts Do Not Have Authority to Dismiss PAGA Claims For Manageability Concerns
As recently covered on this blog, the surge in Private Attorneys General Act (PAGA) lawsuits and the amounts of damages sought in these cases in California has become a significant cause for concern among the business community. PAGA, initially designed to empower employees to file lawsuits for labor code violations on behalf of themselves and…
Predictions for California’s Employment Law Landscape in 2024
As we embark on the year 2024, California’s employment law landscape is poised to continue to present an unfriendly environment for employers. This article proffers some predictions for California employment law in 2024, examining potential legislation and emerging legal trends. Here are a few likely scenarios the Golden State might have in store for employers…
California Supreme Court To Issue Critical PAGA Decision in Estrada v. Royalty Carpet Mills, Inc.
The recent surge in Private Attorneys General Act (PAGA) lawsuits and the amounts of damages sought in these cases in California has become a significant cause for concern among the business community. This legislation, initially designed to empower employees to file lawsuits for labor code violations on behalf of themselves and other workers, has seen…
Decoding the New Rules after the California Supreme Court’s Ruling in Adolph v. Uber Technologies: Arbitration Agreements and PAGA Representative Actions
In Adolph v. Uber Technologies, Inc., the California Supreme Court held that even when an employee enters into an arbitration agreement requiring the employee to arbitrate only their individual claims, the employee still has a right to continue to pursue remedies under California’s Private Attorneys General Act (PAGA), if they are able to…
AB 1228: A Proposed Bill That Could Disrupt the Franchise Fast Food Business Model in California
By Pooja Patel and Anthony Zaller
A new proposed law, AB 1228, called the Fast Food Franchisor Responsibility Act, that targets the franchise business model is making its way through California’s legislature. At first glance, the Fast Food Franchisor Responsibility Act seems to benefit franchisees – it requires franchisors to take responsibility for complying…
The High Stakes and Risks of California’s Private Attorneys General Act (PAGA)
Enacted in 2004, California’s Private Attorneys General Act (PAGA) was designed by the California Legislature to offer financial incentives to private individuals to enforce state labor laws by recovering certain civil penalties. Aggrieved employees can seek recovery of civil penalties for Labor Code violations they suffered, in addition to penalties for all Labor Code violations…
Navigating Unwaivable Employment Law Rights in California: A Guide for Employers
As an employer in the Golden State, it is crucial to have a clear understanding of the protections granted to employees by state law. California is known for its progressive stance on worker rights and its complex set of regulations facing employers. In this article, we will delve into the intricacies of unwaivable employment law…
U.S. Supreme Court Issues Monumental PAGA Decision For California Employers
Today, June 15, 2022, the U.S. Supreme Court issued its decision in Viking River Cruises, Inc. v. Moriana, holding that the FAA preempts California’s prohibition on the employer’s ability to contract with employees to bring only their individual claims in arbitration and not a representative Private Attorneys General Act (PAGA) claim. This is a…