PAGA Reform to be on Ballot in 2022

CalChamber and its coalition partners, including the New Car Dealers Association and Western Growers, have filed the “Californians for Fair Pay and Employer Accountability Act” with the Office of the Attorney General. PAGA, or California’s Private Attorneys General Act, has long been a controversial process by which employees can directly sue their employers for wage and hour claims. They are different from traditional lawsuits and have produced mixed results. The major reforms being proposed by the business coalition seek to reset the terms of the litigation landscape by clarifying that most employers do fully comply with laws. However, when that is not the case, the system must operate in a way that compensates wronged employees quickly. It also proposes to better protect small businesses from frivolous lawsuits, limit the civil penalties, and prohibit attorney’s fees. Upon announcing the filing, CalChamber leadership said, “When workers lose wages, it shouldn’t take years for them to get paid. This measure makes sure wage claims are resolved more quickly and results in a better outcome for workers while reducing shakedown lawsuits.”