Private Attorney General Act Amendment Permits More Government Oversight of Claims
Private Attorney General Act Amendment Permits More Government Oversight of Claims

Buried in an appropriations bill designed to address no fewer than 42 separate issues is a small, but important item for California employers. In  response to requests for legislative restrictions on the Private Attorneys General Act of 2004 (PAGA), the legislature passed State Bill 836, the Governor’s budget bill.  SB 836 includes an amendment to PAGA which provides the Labor Workforce Development Agency (LWDA) with increased oversight of PAGA actions by allowing the LWDA additional time to review and investigate PAGA claims.  There are new requirements for online filing, payment of a filing fee, and submission of all complaints, court orders that award or deny penalties, judgments and settlement proposals to the LWDA.  The resulting amendments to the PAGA are expected to delay PAGA litigation and possibly eliminate some frivolous claims.  Increased LWDA oversight could also complicate any settlement process.  The bill applies to all PAGA claims filed or pending after July 1, 2016.

This alert is intended to note current legal trends in commercial lending and risk management issues. No alert should be construed as representing advice on specific, individual legal matters, but rather as an overview of the subject discussed. Your questions and comments are always welcome. Please do not hesitate to contact me at kscott@ecjlaw.com to further discuss this alert or to answer any questions.

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