What Does PAGA Reform Really Mean for Employers?
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
4) Remedial actions
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.
