California Business and Industrial Alliance (CABIA) PAGA Reform Update

Over the past couple of months Tom Manzo (CABIA) has provided CTA members with an update on his organization's efforts and its attempt to “reform” the California’s Private Attorney General Act (PAGA). 

In 2004, the California Legislature passed a law that transferred a substantial amount of the Attorney General’s power to private citizens – PAGA. This transfer of power enables virtually any current or former employee to sue their employer for any reason, regardless of standing, the existence of an arbitration agreement, and for penalties that often range in the millions – even if no harm is suffered. Though well intended, PAGA has created a cottage industry for unscrupulous attorneys that use the power of the state to extort settlements that line their own pockets, regardless of whether the lawsuits they threaten are backed by facts or not. Unfortunately, many CTA members have been subject to PAGA claims and in some cases multiple claims. 

Mr. Manzo’s group was formed after his own company had to deal with a PAGA lawsuit. His group’s sole purpose is changing PAGA. 

CABIA filed a lawsuit in November of 2018 alleging PAGA violates the state and federal constitutions. Recently, CABIA’s (litigation) complaint survived the state’s challenge. On June 6th, CABIA will be presenting answers to the questions the Orange County Superior Court judge posed to them. 

Additionally, CABIA has used various platforms throughout the state to tell the “PAGA story”. This includes interviews on TV and radio as well as protesting some plaintiff attorney’s offices who have filed lots of PAGA claims. 

How Can You Help?
CTA has established a restricted account called the CABIA/PAGA account. Funds sent to CTA from CTA members for the PAGA/CABIA can only be used for CABIA’s strategic and litigation efforts on reforming PAGA. Funds collected will be used to supplement CABIA’s PAGA reform efforts.

If you are interested in supporting CABIA’s efforts, send your contribution to CTA Attention: CABIA/PAGA Fund

4148 E. Commerce Way
Sacramento, CA 95834.

While CTA is not a direct party to this litigation, members have asked for a pathway to support this effort through CTA.