The intent of PAGA was noble. It was sup-posed to be a quicker and more effective way to deal with workplace disputes, and the act allows workers to bring labor violation claims against an employer or former employer. The workers act as “private attorneys general” who can pursue civil penalties as if they were a state agency.
Under PAGA, the number of lawsuits filed against businesses has increased significantly. Trial lawyers file lawsuits against businesses for hundreds of possible violations. And it isn’t just businesses who get hit; they are going after nonprofits, too.
The worst part about it is that, in many cases, the violations are simple, small, and could easily be fixed. Failing to put up that new breakroom poster? PAGA violation. Missing a comma on a paycheck? PAGA violation. And there are many more examples, ranging from the mundane to the ridiculous.
Lawsuits over small matters
Also, most of the money doesn’t even go to the employees. According to the Fix PAGA campaign, a case filed in 2016 saw employees suing for “wage theft” because they had to walk to the back of a store to clock in for work. The case was settled for over $72 million, and the lawyers walked away with $24 million. What did the employees get? $77 each. Yep, $77.
In another case, an organization that serves individuals with disabilities was sued because it shortened the name to Inc. on paystubs, and employees got $61 each in the case. Did the change hurt any of the employees? No. Were they truly wronged because the pay stub had an abbreviation? Far from it.
For years, business advocates like VICA have gone to Sacramento to ask for changes to the PAGA law by allowing a right to cure, which allows fixable violations to be fixed efficiently and effectively. But time after time, these proposals have been rejected.
We are now asking the Legislature to act before a ballot measure to repeal PAGA goes to the voters in November. While we want it repealed, we are concerned about…
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