On June 18, 2024, California Governor Gavin Newsom, along with legislative leaders, announced a tentative PAGA reform deal aimed at modifying key aspects of the state's Private Attorneys General Act (PAGA). This proposal seeks to address employer concerns regarding penalties and procedural issues associated with PAGA litigation. Click here for article.
Increased Employee Share of Penalties:
Current: Employees receive 25% of PAGA penalties.
Reform: Proposed increase to 35% for aggrieved employees.
Penalties for Malicious Employer Conduct:
Introduces a new $200 per pay period penalty for malicious, fraudulent, or oppressive employer behavior.
Caps on Employer Penalties:
Employers who demonstrate proactive compliance efforts before receiving a PAGA notice may have penalties capped at 15%.
Employers who remedy violations after receiving notice could see penalties capped at 30%.
Standing Requirements for Plaintiffs:
Requires representative plaintiffs to have personally experienced all alleged PAGA violations within the one-year statute of limitations period to pursue litigation.
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