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Good News for Employers – Agreement Reached on PAGA Reform

by | Jun 20, 2024 | blog, Employment Litigation, PAGA |

On June 18, 2024, Governor Newsom and legislative leaders announced an agreement on PAGA reform. An overview of the reform can be found here:

https://www.gov.ca.gov/2024/06/18/governor-newsom-legislative-leaders-announce-agreement-on-paga-reform/.

The overview of the PAGA reform purports to make several changes to PAGA that would benefit California employers, particularly small businesses. We do not know yet what exactly the legislative changes will look like or what impact the reform will have on already pending PAGA lawsuits but are hopeful that they move quickly on the legislation in the coming months. Notably, once the legislation reflecting this agreement is passed and signed into law by the Governor, proponents of the PAGA ballot initiative eligible for the November ballot have agreed to withdraw their measure, so the legislature is motivated to move relatively quickly on this issue.

The DMLC team will stay on top of any new developments regarding this legislation and provide updates as things develop.