California’s farmers and agricultural businesses are seeing the benefits of a more balanced system under the 2024 legislative reforms to the Private Attorneys General Act (PAGA). According to a new report issued this week by California’s leading employment law firms, key early successes of the PAGA reforms include:
- Narrower Standing Reduces Frivolous Lawsuits. Employers and defense lawyers report they are now routinely knocking out claims early by proving the plaintiff didn’t experience certain violations, dramatically shrinking exposure. Claims are resolved faster and for less money because legal disputes are narrower and more manageable.
- More Money & Faster Resolution for Employees. PAGA reforms increased the employee share of penalties from 25% to 35%, with the state receiving 65%. The early resolution process through the state’s Labor and Workforce Development Agency (LWDA) also limits the need for extended and costly litigation.
- Employers Doubling Down on Compliance Efforts. Employers are doubling down on their compliance efforts, conducting audits more frequently, training managers and updating policies proactively.
- Reduced Penalties for Employers. Reduced penalties now balance fairness and enforcement. Defense firms report significantly reduced penalties on employers because of the PAGA reforms.
- One-Year Limitations Period. PAGA reforms clarified standing law that a plaintiff must have experienced a violation within the past year to bring a claim.
- Ability to Limit the Scope of Claims and Evidence to Ensure Manageability. Courts now have explicit authority to limit the evidence to be presented at trial or otherwise limit the scope of a PAGA claim to ensure cases remain manageable for trial.
Western Growers is proud to have played a leading role in pushing the 2024 PAGA reforms. It’s encouraging to see the legislative improvements working as intended.
