This fall, California voters will have the opportunity to decide the fate of the state’s Private Attorneys General Act (PAGA). After receiving more than the 700,000 signatures in support, the “California Employee Civil Action Law and PAGA Repeal Initiative” has qualified for the November 5, 2024 state ballot. If the initiative passes, PAGA will be repealed and replaced with the “Fair Pay and Employer Accountability Act,” which will double the statutory and civil penalties for willful state labor law violations, require 100% of monetary penalties be awarded to employees, and provide resources to employers to ensure compliance with wage and hour laws. The new law will preclude plaintiffs’ attorneys from recovering any fees in actions brought under the statute and impose other requirements to effectively “de-deputize” citizen attorneys general.
What Would the New Law Do?
In response to wide ranging criticism of PAGA, the ballot initiative seeks to repeal and replace PAGA with the Fair Pay and Employer Accountability Act. If passed, the initiative would:
- Double statutory and civil penalties for willful violations;
- Award 100% of monetary penalties to employees (instead of the current 25%);
- Provide resources to employers to ensure labor compliance and allow employers opportunities to cure violations without penalties;
- Require that the Division of Labor Standards Enforcement (DLSE) be a party to all labor complaints;
- Prohibit award of attorneys’ fees (which are currently permitted under PAGA); and
- Require that the state legislature fully fund the DLSE to meet the division’s requirements by law.
