On July 1, 2024, Governor Gavin Newsom signed significant legislation reforming the Private Attorneys General Act (PAGA) after successfully mediating an agreement between business and labor groups. 

The new bills introduce the most substantial changes to PAGA in its 20-year history, offering numerous benefits to California employers. Key changes include more restrictive standing requirements for plaintiffs, a codified need for manageability of PAGA claims, and a reformed penalty structure, among other provisions. 

The legislation, consisting of AB 2288 by Assemblymember Ash Kalra (D-San José) and SB 92 by Senator Tom Umberg (D-Santa Ana), was signed into law after the proponents of the PAGA ballot initiative withdrew their measure last week. 

The new provisions apply to PAGA claims with authorization letters submitted to the LWDA on or after June 19, 2024.