The California legislature has introduced two bills that, if enacted, will significantly change how employment claims are resolved under the state’s Private Attorneys General Act and create major new incentives for staffing companies to focus on compliance to reduce their exposure to such claims. The legislation is a result of negotiations between business groups, labor groups, and other partes designed to ensure that employees’ labor claims are fairly resolved while reducing costly frivolous lawsuits. If signed into law by June 27, the legislation will avert the PAGA repeal initiative that will otherwise be on the California ballot in November. This article by ASA legal sponsor Akerman LLP summarizes the major takeaways of the legislation for the staffing industry.
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