Momentum is picking up in getting signatures for the proposed ballot initiative that would replace the Private Attorneys General Act (PAGA) with a system designed to improve claim resolution for workers and deter excessive litigation filed under the controversial law.
Voters hearing about the ballot measure have been enthusiastic about the opportunity that they have, Brian Maas, who filed the initiative and is president of the California New Car Dealers Association, told the Northern California Record.
“As we continue to get the message out about how flawed the PAGA statute is, and consumers and voters learn that they have an opportunity to fix it, that’s really starting to build the momentum,” Maas said. “Because once voters understand that with PAGA, employees don’t get paid very much, it takes a long time for them to get paid the little amount that they get, it's costing their employers lots of money, and the only people winning under the system are trial attorneys – people can see that’s something that’s broken and needs to be fixed.
“Once they have an understanding of how broken the PAGA system is, they understand why there’s a ballot initiative proposed to make it better.”
The California Fair Pay and Employer Accountability Act of 2022 would reform PAGA by having the state Labor Commissioner resolve claims – paying workers the money they’re owed quickly, 100 percent of it would go to them, and they still preserve the right to sue, Maas said.
A recent PAGA study shows cases handled by the Labor Commissioner result in faster resolution and higher award amounts for workers.
“And since most voters are employees, I think they understand why a system that takes most of the money out for trial attorneys is not one that’s going to work for them,” Maas said.
State data shows that the pandemic has not slowed the pace of firms like the Matern Law Group, which since March 4, 2020, has filed 216 PAGA cases.
PAGA was enacted by outgoing Gov. Gray Davis in 2004, and what the last 18 years have shown is PAGA doesn’t work, Maas said.
Earlier this month, the campaign to reform PAGA reached 25 percent of signatures needed to qualify for the November ballot.
“Our measure creates a process that will be streamlined and efficient, and it ensures that if an employer makes an error, employees will be properly compensated, and that’s going to benefit any employee in the state of California,” Maas said.