California Private Attorneys General Act Passed

On July 1, 2024, California Governor Gavin Newsom signed two bills, Senate Bill 92 and Assembly Bill 2288, that amend the state’s Private Attorneys General Act (PAGA), which deputizes private parties to enforce the Labor Code on behalf of the state.

​In June, Gov. Newsom announced that a deal had been reached with the legislature and business groups to add much needed reforms to PAGA. According to the agreement, business groups would withdraw a ballot measure to repeal PAGA if the two bills were signed.

Highlights from the amendments to PAGA include important changes to: (1) PAGA’s early evaluation and cure options; (2) PAGA’s standing requirements; (3) PAGA’s penalties; and (4) a court’s tools to ensure that PAGA actions remain manageable. Notably, the amendments apply to PAGA actions filed on or after June 19, 2024, unless the underlying PAGA notice was submitted to the Labor Workforce Development Agency (LWDA) and the employer prior to June 19, 2024.

The amendments encourage employers to make good faith efforts to comply with the Labor Code. HCAOA believes all employers should regularly review their wage and hour policies and practices, which include auditing all payroll and timekeeping practices. Doing so will reduce potential PAGA claims if inadvertent compliance issues arise. Additionally, all employers should immediately review any PAGA notices they receive to determine whether to utilize PAGA’s newly expanded cure and early evaluation options.

HCAOA will continue to monitor developments in the PAGA saga and keep you updated.