This week, California Gov. Gavin Newsom, State Senate President Pro Tempore Mike McGuire, and State Assembly Speaker Robert Rivas announced that an agreement to reform the California Private Attorneys General Act (PAGA) has been reached with business and labor groups.
The California Credit Union League worked together with the business industry and joined the Fix PAGA coalition to oppose efforts to expand PAGA. The League is pleased to share this good news, which also means a contentious ballot initiative campaign will be avoided.
Once legislation reflecting the agreement is passed and signed into law prior to June 27, proponents of the PAGA reform ballot initiative that are eligible for the November election ballot have agreed to withdraw their measure.
For years, PAGA’s lawsuit-first approach has proven to be unfair for businesses and ineffective for workers. Many businesses, nonprofit organizations, and employers — including credit unions — have been targets for predatory lawsuits, oftentimes for minor technical violations. PAGA lawsuits have taken longer to resolve worker claims, and workers end up receiving pennies-on-the-dollar while lawyers collectively make billions of dollars.
The agreement reached will reform PAGA to ensure workers retain tools to resolve labor claims and receive fair compensation, while also limiting shakedown lawsuits that hurt both employers and employees.
Click here to read the full announcement and details on the agreement.
