California’s landmark 2024 reforms to the Private Attorneys General Act (PAGA) are already showing positive results for employers and employees, according to a new report released by four of the state’s leading employment law firms.
Read the report here.
Eighteen months after implementation of the reforms, employment law experts report faster settlements, more narrowly focused lawsuits, and greater collaboration between employers and employees.
Key early successes from PAGA reforms include:
- Employers Doubling Down on Compliance Efforts. Employers have ramped up their compliance efforts, conducting audits more frequently while training managers and updating policies proactively.
- Narrower Standing Reduces Frivolous Lawsuits. Employers and defense lawyers report they are now routinely knocking out claims early by proving the plaintiff didn’t experience certain violations, dramatically shrinking exposure. Claims are resolved faster and for less money because legal disputes are narrower and more manageable.
- More Money & Faster Resolution for Employees. PAGA reforms increased the employee share of penalties from 25% to 35%, with the state receiving 65%. The early resolution process through the state’s Labor and Workforce Development Agency (LWDA) also limits the need for extended and costly litigation.
- Reduced Penalties for Employers. Reduced penalties now balance fairness with enforcement. Defense firms report significantly reduced penalties on employers because of the...
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