Extensive vaccination has brought the COVID-19 pandemic to the rearview mirror. Now it’s time for California State Legislatures to focus on helping the state recover its poor economy.
PAGA represents general employees acting on behalf of the State Department of Labor and allows employers to file employment breach claims and distribute fines or settlement income. In reality, PAGA has become a dollar box for court lawyers who file thousands of frivolous proceedings each year and recover most of their revenue.
PAGA’s allegations are often against administrative or honest violations of California’s 1,100-page labor law. For example, an employer who allows employees to have a flexible lunch time is subject to a PAGA proceeding for violating California’s labor law, which requires set breaks. Employers who give employees holiday or performance-based bonuses may face PAGA claims if they do not consider these bonuses in the employee’s base salary for which overtime pay is calculated.
Ah Recent research According to my organization, if the case was resolved under PAGA, employee fares were actually much worse than the state’s Labor Development Agency. In fact, when their case was dealt with by the agency, the workers received almost double the amount, but the employer found that they paid less fines. This is because lawyers usually significantly reduce PAGA proceedings, and fees represent more than one-third of workers’ total recovery.
Another recent analysis We provide anecdotal evidence to support these findings. This suggests that PAGA will spend directly on the work of Californians, as PAGA-related costs force employers to reduce labor costs.
Cross-referencing PAGA claims from 2014 to February 2020 and state layoff data shows that more than 100 medium-sized and larger businesses operating in California have been hit by PAGA 18 years ago. We found that within a month we had fired or completely fired a significant number of employees. Filing. (Since SMEs typically do not need to submit a layoff notice to the state, this analysis omits the substantial impact PAGA has had on these low-margin employers.)
Affected employers include Alpine Village, a Torrance Bavarian-themed restaurant and bar that was forced to dismiss 35 employees five months after the 2019 PAGA claim. .. It also includes sports chalets that closed several parts of Southland in 2016. Eight months after being hit by PAGA’s allegations, a total of 330 employees were dismissed.
Employees have long been the biggest victims of PAGA. To avoid PAGA proceedings, employers need to eliminate shift flexibility and office benefits. For example, employees who used to be able to leave early through lunch to pick up their children from school now have to follow a standard schedule.
The economy has undergone major changes in the last few years. No one disagrees with the enormous impact that e-commerce has had on many retailers. However, such a wide range of challenges facing companies arising from pandemics is a reason to address additional burdens such as PAGA.
California legislators recognize that employees may pay for PAGA claims at work and to eliminate frivolous proceedings for victimless violations of the state’s complex labor law. Needs immediate reform. By updating this law, more Californians will be able to continue working when they need it most.
The pandemic may be over, but homicide-controlled plagues like PAGA remain.
Tom Manzo President and Founder of the California Business and Industrial Alliance. He has about 200 employees in the manufacturing industry.
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