PAGA Reform Signed by Governor - Win For Small Businesses

CalChamber Releases Statement Following Governor’s Signature on PAGA Reform Bills

By CalChamber -July 2, 2024

The California Chamber of Commerce yesterday released the following statement after Governor Gavin Newsom signed into law two Private Attorneys General Act (PAGA) reform measures—AB 2288 (Kalra; D-San Jose) and SB 92 (Umberg; D-Santa Ana):

“Many legislators have called the agreement reached to reform PAGA ‘monumental’ and we could not agree more,” said CalChamber President and CEO Jennifer Barrera. “Governor Newsom’s signature on these two bills represents a successful conclusion to months of hard work and compromise among all parties. The business community, labor, and legislative leadership worked together to establish meaningful change that will curtail rampant PAGA lawsuit abuse while offering better outcomes for employees who have been wronged. The new policies coming out of the reform measures signed today will create more fairness in the process for small businesses and, importantly, incentivize them to understand and comply with labor laws that impact their workforce to the benefit of all.”

“Thank you to Governor Newsom and his team for their leadership and commitment in facilitating a resolution to the problem PAGA lawsuit abuse was creating in the state. We greatly appreciate the efforts of legislative leadership to bring the agreement across the finish line. The efforts of everyone involved in reforming PAGA this year have helped create a better California business climate, adding to the many positive attributes the state has to offer.”

Want to learn more about PAGA Reform?

In the most recent episode of The Workplace, CalChamber President and CEO Jennifer Barrera and CalChamber Associate General Counsel of Labor and Employment Matthew Roberts discuss why PAGA reform was needed and how the compromise agreement is a significant step toward limiting the abusive litigation businesses have seen through the years while making workers “whole” when violations occur. Click here to learn more.