Labor/Employment
Aug. 16, 2024
PAGA reform: a new horizon for California employers
California reformed the Private Attorneys General Act (PAGA) to reduce the risk of PAGA lawsuits for businesses. The reforms included a higher standard for filing PAGA lawsuits, a reduced penalty structure, and a cure process for employers with fewer than 100 employees
Corinne Spencer
Partner and Chair of the firm's Labor and Employment Practice Group , Pearlman, Brown & Wax, LLP
Email: cds@4pbw.com
Corinne is chair of the firm's Labor and Employment Practice Group. She focuses on counseling clients in employment-related matters including litigation, risk assessment, policy preparation, and training.
In recent years, California employers of all sizes have faced increased risk as targets of Private Attorneys General Act (PAGA) lawsuits. Small businesses, non-profit organizations, and large corporations alike were threatened with overwhelming penalties and fees under PAGA, forcing many to pay inflated settlements or declare bankruptcy, as opposed to litigating, regardless of whether the claims had merit. As PAGA claims are representative actions with far less stringent requ...
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