What Does PAGA Reform Really Mean for Employers?

Last Updated 7/26/2024

We have been reporting on the inner workings of the process leading up to Private Attorney’s General Act (PAGA) reform, which recently culminated in California Governor Gavin Newsom’s signing of two companion measures, Assembly Bill 2288, and Senate Bill 92. The Governor’s negotiation efforts led to a successful agreement between business and labor groups to strengthen worker protections, encourage employer compliance, streamline litigation processes, and avert a contentious ballot measure.

Now that the dust is beginning to settle, what does the signing of this legislation mean for employers on a day-to-day practical level? The short answer: Being proactive on the issues inviting past PAGA claims is the key to winning any employment dispute. Employers must establish a close relationship with counsel that they know and trust so that if and when the inevitable letter of intent to sue arrives in the mail, the law firm is ready to move on their behalf. In addition, crafting a legally sound arbitration agreement still makes sense for employers moving forward. Employers should not be lax in crossing their T’s and dotting their I’s; putting your feet up is not an option.

Let’s take a look at some key areas where employers can immediately be administratively proactive to avoid legal pitfalls:

1) Review payroll processes

Accuracy of wage statements and conformance to the Labor Code is of utmost importance. Confirming correctness, amending mistakes immediately and preserving complete and orderly files will help achieve these goals. Did you know having a wage and hour audit done by your lawyer carries the attorney-client privilege? This enables you to take a hard look at your policies without fear that the report and finding could be discoverable in litigation.

2) Deliver the message to management through education

What better way to ensure as few mistakes as possible than to provide proper training to management? Ensuring that supervisors are educated on wage and hour requirements and emphasizing precise timekeeping reduces the chance of error. Update those policy manuals and teaching tools and ensure company conformance to all legal requirements.

3) Create and regularly update effective company policies

Does your company have a complete employee handbook? When was it updated last? Do you have an Injury and Illness Prevention Program? Do you have a Violence Prevention Workplan? Ensuring that these and other workplace policies are in place, constantly updated and most importantly communicated to employees is another way to avoid legal issues.

4) Remedial actions

If in the off chance your company has run afoul of any labor or employment laws, are you in a position to know what to do to remedy the situation? Knowledge of corrective measures, the timing of the correction and documentation of the fix can go a long way to warding off future legal action. In short, be in the know!

Now that you have taken a quick glance at some basic practical steps to help you maneuver your workplace through the new PAGA era, contact Rosasco Law Group to get a head start on having that good relationship with counsel. That way, if by chance, you get that “letter,” you have all the tools at your disposal to deal with any problems quickly and efficiently. Consider scheduling a wage and hour audit with our office. We can do field and in-office audits.

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