By Trevor Witt
An upcoming ballot measure could significantly affect your business and provide some much needed relief from costly and frivolous lawsuits for employers. The November 2024 ballot will contain a measure titled “Fair Pay and Employer Accountability Act,” which proposes to repeal the Private Attorneys General Act (PAGA) in California.
PAGA was initially established with commendable intentions – to protect the rights of employees and ensure fair labor practices. However, in recent years, we’ve witnessed a troubling trend of it being exploited by employees and their attorneys, resulting in an escalating number of vexatious claims against employers. This misuse has led to disproportionate financial and operational burdens on businesses, particularly small to medium-sized enterprises. The proposed “Employee Rights and Business Fairness Act,” on the November 2024 ballot, stands as a beacon of hope to offer much-needed relief from these challenges.
The “Fair Pay and Employer Accountability Act,” if passed, will repeal PAGA and replace it with increased enforcement mechanisms in the hands of the Labor and Workforce Development Agency. The Agency will enforce labor code violations, focusing on encouraging voluntary compliance over punitive measure and ensure that 100% of the penalties go to workers. Notably, the proposed law would double potential penalties that could be levied, however, it would remove the threat of an award of attorneys’ fees. The proposal signifies a landmark development, aiming to maintain employee rights while potentially alleviating the burden of PAGA claims on businesses.
Read more about the Fair Pay and Employer Accountability Act HERE.
Our team at RPNA is committed to staying abreast of these developments. We strive to offer timely updates, comprehensive advice, and solid representation to ensure that your business remains compliant and well-protected in this evolving legal landscape. Do not hesitate to reach out with any questions about the ballot measure or PAGA in general at Nicholas P. Roxborough (npr@rpnalaw.com), Michael B. Adreani (mba@rpnalaw.com), and Trevor R. Witt (trw@rpnalaw.com). We may also be reached at 818-992-9999.
