Compliance Stuff

  Even with the statutory clarifications that came along with last year’s PAGA reforms, California courts continue to wrestle with one of the thorniest aspects of the law: whether plaintiffs can maintain particularly troubling and costly “headless” PAGA claims against employers. The issue of whether a pre-reform plaintiff can maintain a representative PAGA action on behalf of employees other than themselves (also known as a “non-individual” PAGA claim) without alleging an individual PAGA claim has caused confusion for many. However, there is a potential resolution on the horizon. The California Supreme Court is set to decide the issue in the   Leeper v. Shipt, Inc.   case, which we anticipate to be released in early 2026. What do employers need to know about this much-anticipated decision? Did California Employers Celebrate Too Soon? When California’s long-anticipated  Private Attorneys General Act (PAGA) reforms took effect in 2024 , employers celebrated the reshap...

The California Supreme Court recently held that a plaintiff in one Private Attorneys General Act (PAGA) action does not have the right to intervene or object to a judgment in a similar action even if a settlement or other resolution in that similar case results in their PAGA action being entirely extinguished. The Aug. 1 decision in Turrieta v. Lyft, Inc. is a solid win for employers, limiting the exposure they face when targeted with two or more overlapping PAGA actions and providing clarity when making strategic litigation decisions during PAGA settlement negotiations. What are some key takeaways from this ruling, and what should employers do as a result? Quick Background California employers are no stranger to the state’s recently overhauled PAGA. The legislative scheme allows an individual alleging Labor Code violations to bring a lawsuit against an employer and seek penalties “on behalf of himself or herself and other current or former employees. ”   Because of the massi...

These reforms aim to address long-standing employer concerns about frivolous lawsuits and inefficiencies. WHAT’S THE IMPACT? The deal is a significant win for employers— it aims to decrease litigation costs for businesses and simplify the PAGA legislation while still offering employees important protection. The effectiveness of the reforms, particularly the cure provisions, will depend heavily on the specific implementation details and timelines. Download PAGA Reform Agreement Governor Gavin Newsom (California), along with legislative leaders and key stakeholders, has announced significant changes to the Private Attorneys General Act (PAGA). This alert provides an overview of PAGA, outlines the proposed changes, and details what to expect and how to track these changes. What is PAGA? PAGA, enacted in 2004, allows employees to sue their employers for Labor Code violations on behalf of themselves and other employees. This legislation was introduced to enhance the enforcement of labor l...