Due to a high influx of large Private Attorneys General Act (PAGA) settlements, California has reformed PAGA. PAGA was initially created as a tool for employees to file lawsuits against their employers that violated the California Labor Code. Through PAGA, enforcement of California labor law protections became easier by allowing workers to file on behalf of themselves, others, and the State of California for Labor Code Violations.
The reform will bring some important changes to PAGA:
While the reform addresses many concerns raised by employers, there are still uncertainties about how courts will interpret the new amendments. For example, litigation is predicted to establish what constitutes “all reasonable steps,” since the statute does not define the term. This reform appears to be a direct response to an earlier California Supreme Court ruling, which held that California courts cannot strike PAGA claims in effort to foster the efficient resolution of wage class actions. Although the reform aims to curb frivolous PAGA filings, all parties agree that PAGA litigation will not disappear but this reform will “make them more strategic.”