In an article published in Law360 on July 3, 2024, Partner Paul Sherman added his insight on the conversations around the recent legislation amending the California Private Attorneys General Act (PAGA). California Governor Gavin Newsom signed a legislative deal into law recently that will streamline the litigation process and provide employers with additional defenses, while also increasing the percentages of penalties going to workers.

“What we saw was basically the Legislature and Governor Newsom recognizing that employers were really suffering under the current PAGA scheme,” Sherman said.

“There was enough of a critical mass where they took notice and they realized that there was a decent chance that the PAGA statute might go away entirely,” Sherman told Law360. “So, they took a reasonable and compromised approach to return PAGA to what it was originally intended to do and ease the burden on employers, but still kept it in place.”

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