Governor Gavin Newsom has signed into law the two Private Attorneys General Act (PAGA) reform measures, both supported by the California Chamber of Commerce — AB 2288 (Kalra; D-San Jose) and SB 92 (Umberg; D-Santa Ana).
“This reform is decades in the making — and it’s a big win for both workers and businesses. It streamlines the current system, improves worker protections, and makes it easier for businesses to operate,” said Governor Newsom. “I want to thank labor and business groups for coming together to hammer out this deal, and our legislative partners for getting these bills to my desk.”
“Many legislators have called the agreement reached to reform PAGA ‘monumental’ and we could not agree more,” said CalChamber President and CEO Jennifer Barrera in a statement released on July 1, the day the Governor signed the bills.
“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,” she said.
“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.”
Read The Workplace podcast story for more information about the PAGA reforms.
