PAGA Reform Bills Passed By Legislature and Await Governor’s Signature

06.28.2024

Brief Background

On June 20, 2024, we provided an Alert advising of breaking news related to the Governor’s office announcing that a deal had been brokered to amend PAGA (The Private Attorneys General Act of 2004), and remove the pending initiative to repeal PAGA from the November ballot: [California Governor Announces PAGA Reform Deal Reached, Removing Ballot Proposal]. The Alert addressed some of the advantages and disadvantages of the proposed agreement and amendments. Since the Alert, the full text of the two bills has now become available (see below), which bills confirm the terms of the reported agreement and proposed changes that may provide employers with tools and incentive to revisit their policies and practices to ensure compliance with the Labor Code, and to periodically do the same moving forward.

Legislative Update – Full Text of Two Companion Bills Released

The full text of the two companion bills which are being used to support the above effort were released this week and may be viewed at the following links:

https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240AB2288;

https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240SB92.

What’s Next?

The two bills were approved by the California Legislature on June 27, 2024, they now await the Governor’s signature. Both bills were amended to include an urgency clause, which means the bills will become effective immediately upon signature by the Governor.

We will continue to monitor this development and will provide further updates, including a further analysis of the bills when they become finalized and are signed. In the interim, employers should revisit and review their policies and practices, update them as needed, and consult counsel to take advantage of this impending change which, in part, is aimed at providing benefits and improving the compliance and litigation landscape for California employers.