In a Major Victory for Restaurants and Their Workers, California Restaurant Association Announces Meaningful Reforms to PAGA Are Signed into Law

FOR IMMEDIATE RELEASE
July 01, 2024
Contact: Megan Gamble ▪ 916.832.1884 ▪ [email protected]

SACRAMENTO, CA - Today, CRA's President + CEO, Jot Condie, joined executive committee partners including the California Chamber of Commerce, California New Car Dealers Association, Western Growers Association, and others to support and witness Governor Newsom signing major Private Attorneys General Act (PAGA) reform, AB 2288 (Kalra) and SB 92 (Umberg), into law.

"CRA is incredibly proud of the work our organization and the executive committee have done together over the last couple of years that led to this meaningful PAGA reform agreement with labor and the Governor's administration," said Jot Condie. Adding, "Reforms to the broken law have been needed for decades, and these bills mark a historic shift away from growing lawsuit abuse against businesses by trial lawyers that have manipulated PAGA to shakedown businesses and left pennies on the dollar for workers after taking their cut in fees."

Both bills received unanimous passage in both houses of the legislature and support from groups on all sides of the issue.

[Link]

To highlight some of the reforms, this bill package will:

• Increase the amount of penalty share that goes to the worker.
• Require the employee (plaintiff) to personally experience the alleged violations within the last year.
• Cap penalties for employers in certain instances.
• Create a new penalty ($200 per pay period) if an employer acted maliciously, fraudulently, or oppressively.
• Expand which Labor Code sections can be cured, so employees are made whole quickly.
• Protect small employers by providing a more robust right to cure process through the state labor department to reduce litigation and costs.
• Provide an opportunity for early resolution in court for employers.
• Strengthen the California labor enforcement agency.

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