California’s Private Attorneys General Act (PAGA) has been a cornerstone of employment law for plaintiffs across the state, giving employees the ability to file lawsuits against their California employers for labor code violations–whether that be late overtime wages or misclassification. However, Employers have long argued that PAGA is regularly abused, leading to frivolous lawsuits and excessive penalties. In response to these concerns, the California legislature introduced Assembly Bill 2288 (AB 2288), a bill seeking to add injunctive relief to PAGA claims. The bill recently passed the Assembly floor. If AB 2288 passes the Senate to become law, both the state agency and employees authorized to file PAGA lawsuits will be able to seek injunctive relief – i.e. a court order requiring an employer to change their employment practices – in addition to civil penalties and attorneys’ fees, and costs that are currently recoverable under PAGA.
What is PAGA in California?
PAGA was enacted back in 2004 to augment the enforcement of labor laws in California. Under PAGA, employees can “step into the shoes” of the state labor enforcement agency, act as a “proxy” for the agency, and sue their employers for alleged labor code violations they feel they or their coworkers have experienced. PAGA has allowed California employees to file lawsuits alleging various (often spurious) violations of the California Labor Code.
Despite its seemingly good intentions, PAGA has faced significant backlash given its lack of parameters or requirements that employees must comply with in order to maintain a PAGA action. As a result, there has been a surge in lawsuits, with many of these lawsuits being filed over minor or technical violations that could have been resolved without court intervention. Employers have often found themselves settling PAGA claims to avoid costly legal battles, even when the alleged violations appear trivial or non-existent. The outcry based on the unintended outcomes of PAGA has sparked a call for amendment to ensure that it is used more judiciously and effectively.
What is Assembly Bill 2288?
Assembly Bill (AB) 2288 aims to address some of these issues by introducing the possibility of injunctive relief as a remedy for alleged labor code violations. This means that in addition to seeking penalties, California employees can request a court order to stop alleged ongoing labor code violations. AB 2288 would permit, but not require, plaintiff’s lawyers to seek injunctive relief in PAGA cases. Injunctive relief is considered an extraordinary remedy and courts are often reluctant to issue injunctions. Generally, to obtain injunctive relief, a plaintiff must show a likelihood of irreparable harm if the injunction is not entered and that money damage remedies are inadequate. These are difficult hurdles to establish. As a result, injunctive relief is unlikely to result in significant practical changes to PAGA.
Proponents of AB 2288 argue that it will provide a more balanced approach to labor law enforcement, ensuring that employees can address ongoing issues while also giving employers a chance to rectify violations without facing immediate financial penalties.
The Impact of AB 2288 on California Employers and Employees
If AB 2288 becomes law, it could significantly impact both employers and employees in California. For employees, the ability to seek injunctive relief means they can directly address and halt harmful practices in their workplaces. This proactive approach could lead to faster resolutions and better working conditions.
As a general matter, PAGA was intended to bolster labor law enforcement. However, despite this, PAGA has been grossly manipulated by trial attorneys as lawyers are incentivized to plead as many claims as possible, regardless of their merit, to obtain a larger settlement check. This ultimately impacts cash-strapped employers affected by false PAGA claims, who are then forced to settle to avoid litigation costs. This bill would expand PAGA remedies available to employees.
Looking Ahead for PAGA
Along with AB 2288, there is also significant attention on the Fair Pay and Employer Accountability Act. This proposed legislation aims to further reform PAGA by introducing measures to ensure fair pay for employees and holding employers accountable for labor law violations without disproportionately punitive measures. The Fair Pay and Employer Accountability Act intends to streamline the PAGA process and reduce unnecessary lawsuits while establishing compliance and fair treatment of California employees.
Undoubtedly, changes to PAGA are on the horizon. California employers should stay informed about the progress of PAGA and AB 2288 and be prepared for the potential changes it could bring to the enforcement of labor laws in California. We will continue to keep you apprised of developments with this and other California legislation. Additionally, if you’re a California employer who needs guidance on how to best navigate PAGA or AB 2288, get in touch with an experienced California employment law attorney at Hackler Flynn & Associates.
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