The Private Attorneys General Act, also known as PAGA, outsources enforcement of the State’s labor code to trial attorneys, leaving California businesses vulnerable to shakedown lawsuits. To put this in the clearest possible terms, PAGA is not much more than legalized extortion.
- Employers have paid $8 billion in settlements since 2016
- Those settlements end up in the attorneys’ pockets, not the wronged employee
- Employers have little certainty in how California’s 800+ page labor code will be applied, leaving few options but to settle
- The number of PAGA cases is exploding each year as trial attorneys discover how profitable these lawsuits are
The Solution: Reform
PAGA reform will:
- Empower the Labor and Workforce Development Agency (LWDA) to enforce labor code instead of outsourcing enforcement to trial attorneys
- Allow businesses to cure unintentional labor code violations
- Mandate that 100% of fines levied go to the wronged employee(s)
- Establish a Consultation and Publication Unit within LWDA to provide labor code advice to reduce confusion around California’s 800+ page labor code
In simple terms, this ballot initiative cuts third-party trial attorneys out of the picture, allowing wronged employees to take their case directly to the state Labor and Workforce Development Agency (LWDA).
How you can help:
With a cost of over $1B/year on CA businesses, the cost to reform PAGA is small in comparison, but we need your support to make it possible. Donate today to fix this and other broken and abused laws through the ballot box.
The CRA’s IPAC (Issues Political Action Committee) addresses policy issues, fighting against potential proposals and initiatives that will adversely affect the industry’s business practices and bottom line. The IPAC focuses specifically on defeating bad initiatives and supporting good ones. The IPAC does not solicit or accept any “earmarked” contributions. All contribution decisions are made solely by the Principal Officer(s) of the Committee. We are proud that our IPAC has a proven track record of protecting the restaurant and hospitality industries.
Contact Peter Fenolio at firstname.lastname@example.org.
Paid for by California Restaurant Association Issues PAC