More Than 120 Non-Profits, Disability Advocates, Health Providers and Small Businesses Join Fix PAGA Coalition to Reform California’s Broken Private Attorneys General Act (PAGA)

PAGA’s lawsuit-first approach is ineffective and inefficient for workers and unfair to non-profits, small businesses and all California employers

Contact: Kathy Fairbanks, (916) 813-1010

Sacramento – A broad and growing coalition of more than 120 organizations and businesses including non-profits, community and disability advocates, large and small businesses and others across California have joined the Fix PAGA coalition to reform California’s lawsuit-first Private Attorneys General Act (PAGA), which is enriching lawyers at the expense of California workers, nonprofits, small businesses and employers.

“PAGA’s lawsuit-first approach is hurting non-profits like us,” said John Brauer, President & Chief Executive Officer, New Horizons – Serving Individuals With Special Needs. “Organizations like ours simply cannot afford to fight these predatory shakedown lawsuits, often over minor technical violations. These lawsuits siphon the resources we need to best serve our clients with unique and special needs. We need reforms now.”  

The coalition is advocating for an end to the lawsuit-first class-action approach to resolving employee labor claims. Instead, the coalition supports expanding existing Division of Labor Standards Enforcement (DLSE) processes that are proven to resolve employee claims faster and provide workers with more money. The DLSE has a dedicated funding source – paid by employers – to expand staff and resources to handle employee claims.

“PAGA threatens the viability of our organization and thousands of other non-profits throughout California that provide critical services,” said Jordan Lindsey, Executive Director, The Arc of California, an organization dedicated to promoting and protecting the civil rights of people with intellectual and developmental disabilities. “Many non-profits operate on thin margins, often using state and federal funding. Organizations in our industry are having to use taxpayer dollars to fight off and settle lawsuits. This system is deeply flawed and broken and needs to be reformed.”

A recent report found that labor claims filed under PAGA take twice as long to resolve and provide workers only one-third of the compensation compared to employment claims reviewed by state regulators. The report also found that since 2013 there have been nearly $10 billion in PAGA court case awards, but due to significant attorney commissions workers receive only a small portion of these awards. PAGA hurts virtually every industry and employer in California, including non-profits, local governments, family-run businesses and others.

“There is near universal consensus that PAGA is broken and not working for workers or employers,” said Jennifer Barrera, President and Chief Executive Officer, California Chamber of Commerce (CalChamber). “We need sensible reforms to fix this broken system. Our coalition continues to have conversations with key stakeholders to find a better, fairer way for workers and employers.”

The coalition is supporting the already-qualified ballot measure to reform PAGA which is eligible for the November 2024 ballot. At the same time, the coalition is open to a legislative solution to avoid the need for a costly ballot campaign.

A partial list of coalition members is below. For more information and a longer list of organizations, visit: https://fixpaga.com/our-supporters/  

Community & Disability Advocates:

• California Disability Services Association
• California Community Living Network
• The Arc of California

Health:

• California Assisted Living Association
• California Association of Health Facilities
• Association of California Healthcare Districts  
• LeadingAge California

Agriculture:

• Western Growers Association
• Agricultural Council of California
• California League of Food Producers

Business:

• Coalition of Small and Disabled Veteran Businesses
• Family Business Association
• Multicultural Business Alliance
• California Chamber of Commerce
• California Hispanic Chambers of Commerce
• CalAsian Chamber of Commerce

Industry & Trade:

• California New Car Dealers Association
• California Restaurant Association
• California Retailers Association
• California Travel Association
• California Association of Licensed Security Agencies, Guards & Associates