Main Menu

PAGA: The Next Generation, Now In Wide Release for California Employers! 

MSK Client Alert 
July 4, 2024

It’s not very often that California enacts a labor law that is actually favorable to employers— but that very occasion happened this week, setting off early celebratory fireworks for California businesses.  On July 1, 2024, Governor Newsom signed into law significant reforms to the Private Attorneys General Act (“PAGA”), introduced under Assembly Bill 2288 and Senate Bill 92.  Since PAGA’s enactment more than two decades ago, thousands of California employers have been sued for penalty violations collectively amounting to billions of dollars in settlements.

The new law is set to revolutionize PAGA litigation, as Governor Newsom explained, by streamlining the current system, improving worker protections, and in most cases reducing potential employer liability.

Key Provisions of the new PAGA reform law:

The new PAGA law applies to actions brought on or after June 19, 2024.  However, the early resolution process for employers will not be effective until October 1, 2024.  

The above is a (non-exhaustive) summary of the many significant changes to PAGA brought about by the new law’s passage.  California employers should now be aware of the several options under the new law to avoid potential costly litigation of PAGA claims, and consult with their trusted MSK Labor & Employment attorney for further details.   

Clients should also stay tuned for a forthcoming MSK webinar explaining the new changes to PAGA and how they will affect California employers.

Back to Page