California's PAGA Law Leads to Surge in Employee Lawsuits Against Employers

California's Private Attorneys General Act (PAGA) is enabling a surge of employee lawsuits against employers in the state for alleged labor violations. The law allows employees to sue employers on behalf of the state to recover civil penalties for a wide range of labor law infractions, including unpaid wages, overtime violations, and other issues.

Under PAGA, employees can file representative actions against their employers without meeting class action requirements. "The law empowers employees to act as private attorneys general," explained labor law attorney Sarah Thompson. "This has led to a significant increase in PAGA claims in recent years as more workers become aware of their rights under the law."

Employers in California are facing growing legal risks and potential financial penalties from PAGA lawsuits. A recent court decision affirmed that PAGA plaintiffs do not lose standing to pursue claims even if they do not file individual causes of action seeking personal relief. This ruling could further encourage employees to bring PAGA suits.

Why this matters: The rise in PAGA lawsuits is having major impacts on businesses in California. Employers are under increased pressure to ensure full compliance with labor laws or risk costly litigation and settlements. The law is shifting the balance of power between workers and employers in the state.

Governor Gavin Newsom recently allocated $4.5 million in the state budget to establish a PAGA unit within the Labor Commissioner's office. "We must ensure that workers' rights are protected and that employers who violate labor laws are held accountable," Newsom stated. "At the same time, we are providing resources to help businesses understand their obligations and avoid unintentional violations."

As PAGA claims continue to rise, employers in California will need to be increasingly vigilant about labor law compliance. The law provides employees a powerful tool to take action against workplace violations, while employers face a new era of legal challenges and risks in the state.

Key Takeaways

• PAGA allows CA employees to sue employers for labor law violations on behalf of the state.
• PAGA claims have surged as more workers become aware of their rights under the law.
• Employers face growing legal risks and penalties from PAGA lawsuits, even without individual claims.
• CA governor allocated $4.5M to establish a PAGA unit to protect workers and help businesses comply.
• Employers in CA must ensure full labor law compliance to avoid costly PAGA-related litigation and settlements.