On July 1, 2024, California Governor Gavin Newsom signed SB 92 and AB 2288 into law, significantly reforming California’s Private Attorneys General Act (PAGA). Although PAGA will remain a frequent source of litigation for California employers, the reforms are a positive step to reduce employers’ exposure and provide incentives for employers to take proactive steps to comply with the law.

The reforms apply to civil actions filed on or after June 19, 2024. They do not apply retroactively to civil actions filed before that date, and thus the prior PAGA law will continue to apply to those cases.

This article first summarizes some of the key reforms and provides practical tips on what employers can do now to mitigate risks.

For some background on PAGA claims, see our prior article here.

1. Summary of Key Reforms

a. Stricter Standing Requirements

A key reform provides that, to bring a PAGA suit, the plaintiff must have “personally suffered” the alleged violations within one year before filing the notice. The plaintiff can then pursue those violations on behalf of other employees who suffered the same violations. Previously, an employee who had experienced a California Labor Code violation could sue under PAGA on behalf of other employees who had suffered any other kind of Labor Code violation.

This reform is significant because it means that PAGA cases will generally proceed on a more narrow set of alleged violations. However, it may also mean that plaintiffs’ lawyers will...

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