The recent introduction of Assembly Bill 2288 and Senate Bill 92 leads to historic reforms in California’s Private Attorneys General Act (PAGA), following Governor Newsom’s approval. The new laws require plaintiffs to personally demonstrate their experience of labor code violations when seeking to claim penalties on behalf of fellow employees. Additionally, these reforms enhance the manageability of claims and revise the existing penalty structure, ultimately favoring employers while maintaining a degree of access for nonprofit legal entities.
Under the new bills, plaintiffs must prove that they experienced the same Labor Code violations they seek to pursue on behalf of other employees, imposing more restrictive standing requirements.
The reforms introduce a need for manageability of PAGA claims, changing the way plaintiffs can sue on behalf of others and ensuring litigation is more streamlined.
With the significant changes in the penalty structure, employers may face less exposure to massive penalties for violations, fostering a more stable environment for compliance.
Governor Newsom’s signing of Assembly Bill 2288 and Senate Bill 92 marks the most significant overhaul of the PAGA framework, directly benefiting California employers.
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