A new “PAGA Reform” bill was introduced last month, SB-1129 which if passed will effectively reduce the number of frivolous claims brought against employers. Also in February (ironically) a 20 page report was authored singing PAGA’s praises and outlining all the resulting advantages. Interesting that both; the proposal of fixing the brokenness of PAGA and a published report hyping up its heroism can emerge in the same month, 16 years after inception. An odd coincidence in timing?
Reforming PAGA: SB-1129
The two small proposed changes to the Private Attorney’s General Act (PAGA) are outlined as follows:
1.) Limits the amount of PAGA penalties where there is no harm. Where there is a violation that does not result in physical or economic harm to the employee, the PAGA penalties are capped at $5,000 for the violation. (Read Fact Sheet)
2.) Expands the existing provision that offers employers the “right to cure” and resolve minor paystub violations. Previous legislation AB 1506 (Hernandez) of 2015 enacted a very limited right to cure for certain kinds of minor paystub violations. (Read Fact Sheet)
PAGA Hype Report
A new 20 page report was released a few weeks ago touting the benefits and wins that PAGA has brought forth to employees and to the state since its inception…..“Hooray?” [Cue the less than enthusiastic slow clap] One of the major flaws we found, was that the report failed to show data on the actual percentage of PAGA cases that were filed in situations where no harm was done to employees.
The law was intended to protect employees from wage theft and unsafe work environments by allowing them to file claims on their own & the state’s behalf and to relieve the state’s administration from the burden in investigating such claims. Let’s be clear, wage theft and the exploitation of workers should absolutely be brought into the light and exposed as crime.
The problem is that PAGA has exploded into a profiteering machine for the State and for Private Attorneys who claim to represent the aggrieved employees concern and who, in the end get the lion’s share of penalties collected. We only need to consider the large percentage of crushing claims brought against employers for minor violations where no one … is really … IMPACTED, such as in the case for the employer who was taken to court for using their logo on a check stub rather than having their company name spelled out.
The report cited the exponentially growing State revenue that PAGA civil penalties have brought in recent years. We have a question, how did that number nearly triple from 2018 to 2019?
True, the Private Attorney’s General Act has served as a deterrent to slimy, unscrupulous employers. Some of the astronomical awards and settlements have demonstrated the consequences of not playing fair and have created an impact in “changing compliance culture”. However, allowing minor violations to dominate the space, waters down the real intention of PAGA protection.
Bottom line in our opinion –The pendulum has swung too far to the side of corruption, it’s time for things to settle somewhere in the middle closer to justice.