Tom Manzo: One year in, PAGA reform needs reforming

In a state full of harmful laws, one law has been more destructive than most: The Private Attorneys General Act (PAGA).

Businesses were cautiously optimistic in the fall of 2023 when Governor Newsom signed a package of PAGA reforms described as a “big win” for employers. But with a full-year of data now available to review, it’s clear that “PAGA Reform” needs more reforming.

PAGA, enacted in 2003, allows workers to sue employers over minor labor code infractions, like a misdated paystub, and imposes penalties of hundreds of dollars per violation, per pay period, multiplied across all affected employees.

These PAGA penalties add up quickly, with typical cases easily racking up five-, six-, and seven-figure potential consequences. Only a fraction of that money makes its way to workers; th