Quick Overview of Agreement to Reform PAGA

The California Chamber of Commerce has released a new video podcast discussing the recently announced agreement reforming the Private Attorneys General Act (PAGA).

In this episode of The Workplace Podcast, CalChamber President and CEO Jennifer Barrera and CalChamber Associate General Counsel of Labor and Employment Matthew Roberts discuss the compromise announced last Tuesday by Governor Gavin Newsom, Senate President pro Tempore Mike McGuire and Assembly Speaker Robert Rivas after months of discussions between labor advocates and the Fix PAGA coalition, which included CalChamber and representatives from the business community, non-profits, social justice advocates, and family farmers.

During the discussion, Barrera and Roberts discuss why PAGA reform was needed, the ballot initiative, and how the compromise agreement is a significant step toward limiting the abusive litigation businesses have seen through the years while making workers “whole” when violations occur. Barrera mentions that data collected over the last eight or so years supports the fact workers weren’t really benefitting from PAGA actions.

In summarizing the agreement, Barrera says, “Employers don’t have any opposition to making sure employees are made whole when there’s a violation that has happened.” She points out that what has been agreed to will help drive compliance at the front end—which is really helpful to employees because fewer violations will happen in the first place. Barrera further explains that, under the agreement, ensuring that you, as an employer, are in compliance with all labor laws, will help protect against future PAGA litigation and that is a significant part of this agreement.

Roberts asks how things will shape up in the coming week. Barrera explains that legislative language in a bill will be introduced and must be passed by June 27th so that the initiative can be removed from the ballot under existing timelines.