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What Employers Need to Know (and Do) to Protect Themselves

On June 17, labor and business groups reached an agreement with California Governor Newsom to reform the state's Private Attorneys General Act (PAGA), with significant amendments proposed in Assembly Bill 2288 and Senate Bill 92. If approved by the Legislature by June 27, the PAGA repeal initiative set for the November 2024 ballot will be removed. Click here for article.

  • Specific Standing Requirement: PAGA plaintiffs represented by private law firms can only pursue penalties for violations they personally experienced, reducing the number of frivolous lawsuits.

  • One-Year Statute of Limitations: PAGA claims must be based on violations occurring within one year, clarifying the law and preventing outdated claims.

  • Incentives for Compliance: Employers taking steps to comply with the Labor Code may have civil penalties capped at 15-30% of the maximum potential award, encouraging proactive compliance.

  • Curable Violations: Employers can cure certain violations (e.g., unpaid wages, break premiums) to avoid penalties, with specific steps to "make whole" affected employees, fostering a more collaborative resolution process.

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