A broad and growing coalition of more than 120 organizations and businesses, including the California Chamber of Commerce, have joined the Fix PAGA coalition to reform California’s lawsuit-first Private Attorneys General Act (PAGA), which is enriching lawyers at the expense of California workers, nonprofits, small businesses and employers.
“There is near universal consensus that PAGA is broken and not working for workers or employers,” said Jennifer Barrera, CalChamber president and CEO. “We need sensible reforms to fix this broken system. Our coalition continues to have conversations with key stakeholders to find a better, fairer way for workers and employers.”
The coalition, which includes nonprofits, community and disability advocates, large and small businesses, and others across California, is advocating for an end to the lawsuit-first class-action approach to resolving employee labor claims.
Expand Existing Processes
Instead, the coalition supports expanding existing Division of Labor Standards Enforcement (DLSE) processes that are proven to resolve employee claims faster and provide workers with more money. The DLSE has a dedicated funding source — paid by employers — to expand staff and resources to handle employee claims.
A recent report found that labor claims filed under PAGA take twice as long to resolve and provide workers only one-third of the compensation compared to employment claims reviewed by state regulators.
The report also found that since 2013 there have been nearly $10 billion in PAGA court case awards, but due to significant attorney commissions, workers receive only a small portion of these awards. PAGA hurts virtually every industry and employer in California, including nonprofits, local governments, family-run businesses and others.
Threat to Nonprofits
“PAGA threatens the viability of our organization and thousands of other nonprofits throughout California that provide critical services,” said Jordan Lindsey, executive director, The Arc of California, an organization dedicated to promoting and protecting the civil rights of people with intellectual and developmental disabilities.
“Many nonprofits operate on thin margins, often using state and federal funding. Organizations in our industry are having to use taxpayer dollars to fight off and settle lawsuits. This system is deeply flawed and broken and needs to be reformed.”
The coalition is supporting the already-qualified PAGA reform ballot measure, which is eligible for the November 2024 ballot. At the same time, the coalition is open to a legislative solution to avoid the need for a costly ballot campaign.
Coalition Members
A partial list of coalition members is below. For more information and a longer list of organizations, visit fixpaga.com/our-supporters/.
Community & Disability Advocates:
- California Disability Services Association;
- California Community Living Network;
- The Arc of California.
- Health:
- California Assisted Living Association;
- California Association of Health Facilities;
- Association of California Healthcare Districts;
- LeadingAge California.
- Agriculture:
- Western Growers Association;
- Agricultural Council of California;
- California League of Food Producers.
Business:
- Coalition of Small and Disabled Veteran Businesses;
- Family Business Association;
- Multicultural Business Alliance;
- California Chamber of Commerce;
- California Hispanic Chambers of Commerce;
- CalAsian Chamber of Commerce.
Industry & Trade:
- California New Car Dealers Association;
- California Restaurant Association;
- California Retailers Association;
- California Travel Association;
- California Association of Licensed Security Agencies, Guards & Associates.
