MICHAEL SULLIVAN & ASSOCIATES BLOG

Two weeks ago, we reported on some exciting new reforms to the Private Attorneys General Act of 2004 (“PAGA”) that were beginning to take shape in the California Legislature. We are now happy to report that those changes have been formally adopted and approved!

These changes only apply to future PAGA lawsuits for which a notice was filed with the Labor and Workforce Development Agency (“LWDA”) after June 19, 2024. Pending PAGA lawsuits and ones filed based on LWDA notices that predate June 19, 2024 are not impacted. Still, the reforms provide employers with new tools to manage their PAGA exposure. Now that we have had the chance to review the text of “PAGA 2.0”, here are the biggest improvements and drawbacks we see coming down the pike.

Governor Newsom’s office announced Tuesday, June 18th, that much needed and long-awaited reform to the Private Attorneys General Act ("PAGA") is finally on the horizon! While we’re still waiting to see the exact text of the bill, here is what we expect from "PAGA 2.0" based on a release from the Governor’s office.

The California Supreme Court just handed down its long-awaited decision in Adolf v. Uber Technologies, Inc., (“Uber”), and you are probably wondering how that ruling affects the arbitration agreements you have in place with your employees.

The short answer is: it doesn’t. Exhale!

Date & Time: June 14th, 2023 - 11:00 AM - 12:00PM
Register at: msa.news/06-14-23-webinar

California employers are not strangers to the ever-evolving minefield of compliance exposure under our unique employee-friendly state laws. Join employment law trial attorney Eric De Wames on June 14th, for an attorney’s perspective on key trends and common pitfalls in the wage and hour world. Get up to speed on the latest trends and strategies to avoid litigation exposure and defend claims when they arise. Attendees will obtain insights on pros and cons to arbitration agreements, PAGA action trends, and compliance suggestions to avoid exposure.

Space is limited, so register today!

In a highly-anticipated opinion released yesterday, Viking River Cruises, Inc. v. Moriana, the Supreme Court of the United States ruled that arbitration agreements between employers and employees can both send an employee’s claims under the Private Attorneys General Act, or PAGA, to binding private arbitration and prevent the employee from litigating Labor Code violations allegedly suffered by other employees. The immediate effect is a win for California employers with properly drafted arbitration agreements, but the opinion may signal the start of a new phase in the long-running arbitration wars rather than the decisive victory some employers hoped for.

A case currently pending in the Supreme Court of the United States could spell a big win for California employers this summer, allowing them to foreclose a wider range of group employee lawsuits using arbitration agreements.