PAGA
PAGA Reform Content
Meaningful Reforms to PAGA Signed
Both bills received unanimous passage in both houses
On July 1st, 2024, Governor Newsom signed two major Private Attorneys General Act (PAGA) reform bills, AB 2288 (Kalra) and SB 92 (Umberg), into law. These bills were the direct result of CRA’s negotiations with labor and the administration, along with our executive committee partners, the California New Car Dealers, California Chamber of Commerce, and Western Growers Association.
Together We Empower Restaurants
Top 6 reform highlights from the bill package.
Increases the amount of penalty share that goes to the worker
Requires the employee (plaintiff) to experience the alleged violations within the last year personally
Caps penalties for employers in certain instances
Creates a new penalty ($200 per pay period) if an employer acted maliciously, fraudulently, or oppressively
Expands which Labor Code sections can be cured, so employees are made whole quickly
Protects small employers by providing a more robust right to cure process through the state labor department to reduce litigation and costs
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CRA members get one call (not to exceed 15 minutes) of legal advice every month with one of our legal partners
Why the PAGA Reform was Needed?
PAGA was not much more than legalized extortion, leaving CA businesses vulnerable to shakedown lawsuits
PAGA enforcement was left to trial attorneys. Under PAGA’s broken system, employers have paid out $10 billion in settlements since 2013 – with attorneys pocketing significant fees after an easy shakedown, while workers received only a small portion
PAGA Library
Webinars ● Podcast ● And More
News You Need to Know
Two Victories: PAGA Reform & Pricing Flexibility/Transparency Bill
News Release
In a Major Victory for Restaurants and their Workers, California Restaurant Association Announces Meaningful Reforms to PAGA are Signed into Law
Podcast: Confidential Bulletin
This is Not a Drill. We Have PAGA Reform.
CRA Legal Center Webinar with Fisher Phillips
A PAGA Reform Victory-Impact and Insights for Your Business
CA’s PAGA of 2024 Report
An Assessment of Outcomes and Recommendations for a More Effective Alternative
Website
The Fix PAGA site was designed to bring together the community to support a better and fairer way for CA workers
You can make a difference by supporting the CRA’s IPAC
Donations help to strengthen our advocacy efforts and provide the industry with a stronger voice in CA
The CRA’s IPAC (Issues Political Action Committee) addresses policy issues, fighting against potential proposals and initiatives that will adversely affect the industry’s business practices and bottom line. The IPAC focuses specifically on defeating bad initiatives and supporting good ones. The IPAC does not solicit or accept any “earmarked” contributions. All contribution decisions are made solely by the Principal Officer(s) of the Committee. We are proud that our IPAC has a proven track record of protecting the restaurant and hospitality industries.