California's PAGA Reform Deal Tempers Worker-Friendly Law
To assess compliance with California law, and reduce potential exposure to PAGA, employers should consider reviewing their wage-and-hour policies, conducting periodic payroll audits, and assessing whether to provide additional supervisor training.
August 06, 2024 at 02:21 PM
6 minute read
In a welcome development for California employers, the California Legislature recently passed reforms to the controversial Labor Code enforcement statute known formally as the Labor Code Private Attorneys General Act of 2004 (PAGA). Business groups had backed an initiative eligible for the November ballot that they say would have repealed and replaced PAGA. The legislation, which Gov. Gavin Newsom signed into law July 1, 2024, was the product of a deal that caused the business groups to withdraw their measure. The reforms restore more traditional standing requirements, codify case management tools for judges, and implement a more employee-friendly penalty structure, among other things. These changes apply to PAGA actions brought on or after June 19, 2024.
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