Catherwood LibraryILR School

In a landmark decision, the California Legislature has passed bills amending the 20-year-old Private Attorneys General Act (PAGA), which allows employees to sue employers over labor violations. These reforms emerged from a collaborative agreement between Governor Gavin Newsom, lawmakers, business groups, and labor leaders, effectively preventing a ballot measure that sought to repeal the law. Key changes include lowering penalties for minor infractions, increasing them for severe violations, and allowing businesses with fewer than 100 employees to correct violations before penalties are enforced. The revised law also adjusts the allocation of fines, increasing the share that goes directly to affected workers from 25% to 35%. Governor Newsom praised the compromise as a significant achievement in his State of the State address, highlighting the complexity of the issue and the successful resolution. The bills passed unanimously in both the state Senate and Assembly and are expected to take effect immediately upon Newsom's signature.