The plaintiffs bar, business groups, organized labor and lawmakers have reached a deal to amend the Private Attorneys General Act, or PAGA, and avoid a costly ballot initiative fight in the fall, the parties announced Tuesday.

The California Chamber of Commerce and corporate allies have agreed to drop the Fair Pay and Employer Accountability Act from the November ballot in exchange for significant changes to PAGA, the 20-year-old law that allows workers to "step into the shoes" of the state to enforce labor laws.