What is the Private Attorney General’s Act and Why Should California Workers Care?

Many experts agree that it is open season on American workers. The increasing volatility of political discussions on both sides of the argument lends credence to this belief. As an American worker, it's more important than ever to get out and vote for pro-labor candidates. It's vital to vote for candidates actively seeking to protect the laborer because the winning candidate can nominate individuals to fill Supreme Court vacancies. The judges on the Supreme Court interpret labor law. Currently, labor law interpretations at the Supreme Court level are unarguably one-sided in favor of companies leaving the American worker without the ability to bring a class action.

 California's Private Attorney General Act (PAGA) was passed in 2004, allowing individuals to bring what would otherwise be state claims for penalties when their employer violates employment law. This powerful law enables employees to take action and enforce California's strict wage laws and safety laws by effectively circumventing the mandatory arbitration agreements many California employees are forced to sign.

Employees who sign a mandatory arbitration agreement cannot file a class-action lawsuit. For these workers, PAGA is their only means of obtaining justice (through PAGA penalties) when their employer does not pay accurate wages as determined by the California Labor Code and the California Wage Orders. The state of California oversees PAGA lawsuits, and the state can intervene in any PAGA case if they find it necessary. Additionally, every PAGA settlement is approved by the Judge, and also the state of California (via the Labor and Workforce Development Agency). The introduction of PAGA has had a significant effect throughout the state of California.

 PAGA Benefits the Government:

 1. Increased Revenue for the State: PAGA generates hundreds of millions of dollars of revenue for the state, with private attorneys doing the legwork.

2. Enforcement of the Law: The ability to enforce the law provides the necessary balance we need to give California companies a reason to comply with the law. The law is not the problem in today's workplace; the problem is enforcement. If there is no method of enforcing the law, the number of employment law violations in California will skyrocket. 

 PAGA Benefits California Businesses:

 1. With the PAGA providing an efficient method of enforcement, California businesses are far less likely to "cheat to compete." Cheat to compete refers to business practices used as a means of increasing profitability (regardless of the law and often at the expense of employees). With the PAGA providing California companies with a healthy dose of fear, employers who ARE dedicated to following the law are not left at a disadvantage.

 PAGA Benefits California Workers:

 1. Protects their Rights as an Employee: In addition to allowing employees to seek payment for their losses due to employment law violations, the ability to seek justice through the PAGA results in significant positive change in California's workplaces. Most, if not all, companies who are brought to task for employment law violations under PAGA change their practices because they don't want to face the same situation (or penalty) again. The change in unlawful business practices benefits all employees who work for the company now and in the future.

2. Circumvents Supreme Court: It provides individual employees the opportunity to go as a group and bring individual actions in arbitration to counteract the ability to bring class actions.

 PAGA Benefits the Economy:

 1. Even Playing Field: California has been booming since the law was passed in 2004. One of the reasons behind the state's healthy economy is PAGA. The law makes sure employees are not underpaid, misclassified, or paid under the table.

 If the PAGA goes away – so does the California worker's protections against employment law violations. PAGA claims are not for technical violations, as the PAGA law provides employers with time to cure their violations after notification with no penalties incurred for technical violations. PAGA claims to address a variety of employment law violations, including unpaid overtime, minimum wage violations, missed meal breaks, missed rest breaks, misclassification, unreimbursed business expenses, and miscalculated pay rates. An employee who brings a PAGA claim still has the opportunity to sue their employer for an individual wage claim since PAGA claims are brought on behalf of the State of California for additional penalties for labor code violations.

 You could consider the current attack against the PAGA as a testament to its success. It's an effective go around of the federal Supreme Court, a solid piece of protection for California workers. Political groups intent on backing the companies over the workers are seeking a way to remove it from the equation through referendum. Advocates of the movement to get rid of California's PAGA continue efforts to convince the electorate that the PAGA is solely a means of generating income for attorneys, when, in fact, they generate hundreds of millions of dollars for the state. 

 The PAGA is the type of law that keeps the playing field even for workers, but it helps everybody. Yet management is presenting the PAGA in a negative light as we lead up to the coming election in hopes that California workers will not stand up and vote for the candidate that will protect their rights as employees. Protections for employees under PAGA are overwhelming. That's why California has prospered in recent years.

 There's no doubt that employees want the PAGA or a similar law in their state. It offers the ability to bring class actions. It's all workers have to protect them. You can't even bring a claim under FLSA because of the arbitration provisions. That's how tough it's become. Without PAGA or a similar law protecting the employee, a worker's chances of protecting themselves are slim to none. As we get closer to California's March 3rd, 2020  primaries, remember to seek out the candidate that is going to help you with what you need. We need to make sure we have someone who's going to win and who's going to protect the interests of the California worker and the California companies who comply with labor law.

 If you have questions about how PAGA handles labor law violations or if you need to discuss an employment law violation, please get in touch with Blumenthal, Nordrehaug, Bhowmik DeBlouw LLP. As experienced employment law attorneys, we care about the California worker, and we are actively seeking to keep laws in place that enable you to seek justice when an employer violates labor law. Our experienced labor law attorneys are ready to assist you in any one of various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.