In a surprising turn of events, a last-minute political compromise has thwarted the efforts to repeal a landmark California law that allows workers to sue their employers for workplace violations. This law, known as the Private Attorneys General Act (PAGA), has been a contentious issue, costing companies billions in settlements over the years.
Governor Gavin Newsom announced the compromise on Tuesday after meetings with business leaders and the California Labor Federation. This compromise aims to modify the 2004 law to strike a balance between protecting workers’ rights and reducing excessive litigation against businesses.
PAGA empowers employees to file civil complaints on behalf of themselves and their colleagues, often resulting in hefty settlements for businesses. However, the compromise seeks to maintain strong protections for workers while providing incentives for businesses to comply with labor laws and reduce the burden of litigation.
A study released earlier this year revealed that PAGA has cost businesses around $10 billion since 2013, with a significant increase in settlement proposals in recent years. Companies like Google and Walmart have faced multimillion-dollar settlements under this law, raising concerns among business groups.
To address these concerns, a measure to repeal PAGA was proposed for the November ballot, prompting labor groups to defend the law as a crucial tool against corporate abuses. The compromise legislation includes provisions for higher penalties on violators and increased benefits for employees, striking a balance between protecting workers and reducing frivolous litigation.
Industry leaders and labor advocates have expressed support for the compromise, acknowledging the need for reforms that benefit both workers and businesses alike. The California Chamber of Commerce praised the legislation for providing meaningful reforms, while the California Labor Federation welcomed the changes as a step towards ensuring workers’ rights are upheld.
