Gov. Newsom Announces Landmark Private Attorneys General Act Reforms

This November, California voters were expecting to vote on a measure that would replace the current Private Attorney General Act (PAGA) statute with the California Fair Pay and Employer Accountability Act (FPEAA). In a plot twist similar to what unfolded with respect to the recently enacted FAST Act, Gov. Newsom and legislative leaders announced in a June 18, 2024, press release that an agreement to strike FPEAA from the ballot (just days before the June 27, 2024, deadline to do so) and fundamentally reform PAGA was reached ("PAGA Reform Agreement"). The PAGA Reform Agreement reflects significant negotiations between Gov. Newsom's office and legislative leadership and business/labor stakeholders.

On June 21, 2024, companion bills Assembly Bill 2288 (AB 2288) and Senate Bill 92 (SB 92) were introduced to memorialize the PAGA Reform Agreement, and these bills are now making their way through the legislative process. If the legislation is signed into law as currently drafted, its provisions will apply to civil actions brought on or after June 19, 2024 (except as otherwise specified).

What Are the Anticipated PAGA Reforms?

The current text of AB 2288 and SB 92 includes the following PAGA reforms:

What Comes Next?

This legislation may be fast-tracked and signed by Gov. Newsom before the June 27, 2024, deadline for ballot measures to be withdrawn.