Earlier this year we wrote on the U.S. Supreme Court’s decision in Viking River Cruises, Inc. v. Moriana that struck a major blow to California’s Private Attorneys General Act (“PAGA”). Now on the heels of the Viking River decision, California officials have announced that a proposed law to overhaul PAGA, called the California Fair Pay and Employer Accountability Act (“Act”), will be put on a referendum to the voters in November 2024. The Act proposes in large part to repeal PAGA, including PAGA’s mechanism that allows an employee to sue in civil court on the state’s behalf to enforce the California Labor Code and seek penalties for doing so. We highlight here why PAGA is under fire, what the Act would change, and some key takeaways for employers to combat PAGA lawsuits leading up to the 2024 ballot.

What is PAGA and Why is it Under Fire?

PAGA is a unique California statute that allows an employee to stand in the shoes of the State of California as its representative and bring a lawsuit for violations of many California Labor Code provisions.

PAGA’s key features include:

• An employee’s right to bring a representative lawsuit on behalf of similarly situated employees for Labor Code violations triggering penalties;

• An award of 75% of any penalties to the state and 25% to employees; and

• An award of reasonable attorneys’ fees.

These features account for the uptick in PAGA litigation against both large and small employers, and why the statute has been sharply criticized...

Read Full Story: https://www.natlawreview.com/article/california-voters-will-decide-paga-s-fat...