In summary
The opposing coalition released a competing study on the little-known Private Attorneys General Act, or PAGA for short. The measure on the November ballot would repeal, at least for now, the law that allows employees to file class-action lawsuits for certain labor law violations.
Businesses and workers are poised to face off again in Californians' votes. This time it's about an important state labor law from 20 years ago that you've probably never heard of.
The two released dueling reports this week extolling the virtues and sins of the state's private attorney general law, which major employer groups such as the California Chamber of Commerce are seeking to repeal on the November ballot.
The law, and a series of recent court decisions regarding its scope, are deeply mysterious, but the gist is this:
Workers who allege wage theft and other labor law violations can ask the state Labor Commissioner's office to investigate and name or sue their employers.
Private Attorney General Law offers another option. The state then outsources the case to private lawyers and the workers become plaintiffs on the state's behalf. If the worker prevails, private lawsuits, as well as state lawsuits, can be used to collect payments from the worker and his or her co-workers. The state gets the lion's share because workers who took advantage of the law sue the state for penalties.
Labor groups like this law because it increases the capacity of state labor boards. The same goes for the lawyers who file these lawsuits on behalf of workers and collect legal fees.
Business groups dislike the law, arguing that it will make lawyers rich while many companies face expensive lawsuits for technical violations. A coalition of business organizations approved a ballot measure two years ago to repeal the law. The organization reported receiving $15 million from the campaign last month.
On Wednesday, they released a report written by three former state labor officials. It was found that workers who participated in lawsuits received less money from payments than workers who participated in successful state investigations. Workers also waited longer for awards, the report said.
Today, the UCLA Labor Center and two advocacy groups released their own report saying that without private lawsuits, the state Labor Commissioner's Office does not have the capacity to accept thousands of new wage theft complaints. The report also says many employees have agreements that waive their right to sue their employers directly, leaving some workers with no other choice.
The two sides could reach an agreement and force Congress to pass a law reform bill in exchange for removing the repeal measure from the vote, as companies and workers did last year when they agreed on a new minimum wage for fast-food workers. There is sex.
Business groups have proposed resolving state-processed complaints more quickly and reducing the amount lawyers can collect from payments. They spent more than $800,000 lobbying Congress to overhaul the law in the last three months of 2023.
A deal would need to be reached by a deadline at the end of June to remove the measure from the November vote. Otherwise, difficult issues will be left in the hands of voters.
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