Legislative Update: PAGA Bills Fail to Advance
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On Wednesday, April 18, two bills that would have reformed the way Private Attorney General Act (PAGA) liability works, both failed in the Assembly Labor Committee. Each bill failed along party line vote of 2 to 5.
AB 2016 (Fong) would have provided employers a more detailed account of the alleged Labor Code violations and reasonable opportunity to cure before being subject to costly and frivolous litigation under PAGA.
AB 2907 (Flora) would have provided a reasonable opportunity to cure specific Labor Code violations before being subject to costly and frivolous litigation under PAGA.
Both Assemblyembers Fong and Flora both discussed how a select few attorneys are sending template letters to companies to blackmail them into settlements and how these attorneys are pocketing millions in attorney fees while the claimants often receive nothing or very little, which was never what PAGA was meant to do.
CTA appreciates the efforts of both Assemblymembers Fong and Flora and will continue to work with them and the Legislature to explore any and all avenues to reform PAGA lawsuits.
