In this episode of California Employment News, Meagan Bainbridge and Ryan Abernethy break down the latest PAGA reforms and what employers need to know to reduce penalties and stay compliant. From new cure opportunities to proactive audits, they cover actionable steps to protect your business.
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Last year, we reported on the reforms to the Private Attorney General Act (PAGA) that Governor Gavin Newsom signed into law on July 1, 2024. The reform legislation was pushed through to avoid a ballot vote on a measure seeking to repeal PAGA entirely in the 2024 election. The legislation was aimed at providing some relief to employers from the flood of meritless PAGA claims and provide mechanisms for early resolution. The legislation also gave the Department of Industrial Relations (DIR) the resources and ability to expedite hiring and to fill vacancies in the CA Labor and Workforce Development Agency (LWDA) which is the division responsible for PAGA administration and oversight. While the reforms did not appear deter the “serial filer” firms from filing a record number of cases (9,463 PAGA notices were filed in calendar year 2024 – a jump from 8,100 the prior year), we are extremely pleased to report that the LWDA and its new hires, have begun taking a much more active role in these cases at an early stage and cracking down on the worst abusers of the PAGA statutes.Continue Reading An Update on PAGA Reform from the Trenches – Finally, Some Relief for Employers from Meritless Claims
The California Department of Industrial Relations (“DIR”) recently issued some FAQs regarding how PAGA claims are administered following reform legislation. As you may know, the CA Legislature acted earlier this year to pass legislation to reform PAGA in order to avoid a vote by citizens this November on a ballot measure to repeal the PAGA statute.Continue Reading CA’s DIR Issues Frequently Asked Questions Related to PAGA After This Year’s Legislative Reform
Weintraub attorneys Shauna Correia and Lukas Clary as they discuss the new PAGA reform, offering insights on how it impacts California employers and steps they can take to stay compliant in the latest episode of “California Employment News.”Continue Reading California Employment News: Navigating the New PAGA Reforms: What Employers Need to Know
On May 10, 2024, the Ninth Circuit decided Yuriria Diaz v. Macys West Stores, Inc. In that case, Diaz brought California Private Attorneys General Act (“PAGA”) claims against her former employer. The district court compelled both Plaintiff’s individual and non-individual PAGA claims to arbitration, reasoning that the arbitration agreement’s broad language must be interpreted to encompass both types of claims. Macy’s appealed.Continue Reading Ninth Circuit Holds that Non-Individual PAGA Claims Cannot be Compelled to Arbitration Even When the Agreement Only Waives Class or Collective Actions
