PAGA Reform: What California Employers Need to Do Now

Since it was enacted in 2004, the Private Attorneys General Act (PAGA) has allowed individuals to file lawsuits against employers seeking penalties for such Labor Code violations as failure to properly provide overtime pay, missed meal and rest break, and inaccurate or noncompliant wage statements, to name just a few.

The PAGA has presented an enormous challenge for large and small employers alike who are trying to understand and comply with California’s ever evolving wage and hour laws — and has resulted in a substantial increase in litigation that costs businesses of all sizes billions of dollars while bringing little benefit to workers.

On July 1, 2024, however, Governor Gavin Newsom signed into law two PAGA reform measures that, together, will curtail rampant PAGA lawsuit abuse while capping potential penalties that are attached to such claims for employers that take “all reasonable steps” to comply with the law.

Download CalChamber's free "PAGA Reform: What California Employers Need to Do Now" white paper for details on the new PAGA reform, and how employers can implement “reasonable steps” as outlined in the new law now to improve their wage and hour practices, ensure compliance and take advantage of the changes to the PAGA.