(Nov. 2025) California’s landmark 2024 reforms to the Private Attorneys General Act (PAGA) are already showing positive results for employers and employees, according to a new report released by four of the leading employment law firms in California. Eighteen months after implementation, leading employment law firms report faster settlements, narrower lawsuits and greater collaboration between employers and employees.

Key early successes from PAGA reforms include:

• Compliance: Businesses are conducting more frequent audits and compliance training for management.
   
• Reduced Frivolous Lawsuits: Claims are being dismissed early, leading to quicker and more cost-effective resolutions.
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• More Manageable Litigation: The employee penalty share increased from 25% to 35%, with the state receiving 65%, encouraging timely resolutions and reducing litigation costs. The early resolution process through the state’s Labor and Workforce Development Agency (LWDA) also reduces the need for extended, costly litigation.
   
• Reduced Penalties for Employers: Lower penalties promote fairness for employers.
   
• One-Year Limitations Period: Plaintiffs must have experienced a violation within the last year to file a claim.
   
• Ability to Limit the Scope of Claims and Evidence to Ensure Manageability: Courts can restrict evidence and claims to ensure manageable cases.

With early data already showing reduced litigation and stronger compliance, California’s PAGA reforms are delivering on the promise to improve the system for both employers and employees.

View the full report