Simla Stock：California to Change Labor Law That Cost Businesss $ 10 Billion

The Deal Caps Years of EFFORTS by the State's Emplayers to Rein in the Private Attorneys General Act, Which the Blame for Mounting Lawsuits that account to one s Tudy has been Businesss $ 10 Billion during the pass decade. Advocates say the law, known as paga, isA Model of Worker Protection that has given employees a measure of recourse aginst powerful companies.

The Agreement Calls for Limiting PenalTies Owed by Employers that Act Swiftly to Fix Alleged ViolaeringS and Giving Business More Avoid Paga Lawsuits I n the first place by correcting labor code violalations. At the say time, the emblayers action "Maliciously, Fraudurently Or Oppressively" would "would" wouldFace Higher Penalties, accounting to a statement tuesday from Gavin Newsom's Office.

Related: California Governor WANTS TO CURB A LAWOR LAW that Cost Businesss $ 10B

The Paga DEAL PRESERES The LAW ’s Key PROVISIONS, Which Establish A UNIQT RIGHT in California for working. Legend Workplace Violations.

"WE Came to the table and hammered out a dead that works for both businesss and workers, and it will bringneded improvements to this system," Newsom Said in the St ATEMENT.

Newsom Convened Weks of Negotiations Between The California Chamber of Commerce and The California Labor Federation to Hash Out. Ovember Ballot Measure, Backed by a COALION of Business Groups, that would have given voters the opancenity to repel thePaga Law Altogether.

The Measure Will Now Be Removed from the Ballot, and the Deal is Expected to be approvd by State Lawmaker, Emocratic leaders in Both Houses of the Legislative.

Paga, Which Pased in 2003, Has Grown Into A Major Thorn in The SIDE of Business SideSSESSESSESENENG EMPLELOYES FILE LAWSUITS on Behalf Their Colleas and DUCK D Arbitation Clauses. With such clauses becoming increasingly common, paga cases have spikedSimla Stock. in 2022, the itNumber of settlements Topped 3,165, compared with only about 1,000 in 2017, accounting to a report commissioned by the chamber of commerce.

OPPONENTS of Paga Have Long Argued That Law Allowed An Army of Lawyers to File Lawsuits for MINOR Technical Violaerings of the State's Sprawling Labor Code, Such as aSpelling Errs, that do read't to more serious issues,They pointed to cases in which plaintiffs' Attorneys.

Jennifer Barrera, Pired of the Chamber of Commerce, Said The Compromise Deal Will Limit "Frivolous Litchation that has been Employers Billings Will Benectioning worker. "Hyderabad Stocks

Unions Had WORIED THAT WAT WAGE TheFT WOULD Go UNPUNISHED If Paga WAS Repealed. While Workers Can File Claims Seeking With the State Labor , That DEPARTMENT Is Understaffed and Can TAKE More than Two Years to Reach Decisions, According to a State Auditor Report.

"We are happy to have neigotiated reforms to paga that better entaice abusive publics by employers are cured and that workers are," Said Lorena Alez, the head of the callnia labor feedration.

The Negotiations Over the Law Mirrow An Increasingly Familia PlayBook in California, where companies often look the state learning Super-Majority by Funding Ballot Measures that will take their arguments diaTo Force Talks Overseen by the Governor's Office.

If An Agreement is Reacked, The Legislative Approves The Compromise and All Sides Avoiding the TENS of Milllars that It Would to Drum Up SUP Port or Opposition for the Ballot Measure — A SCENARIO that Now Looks Highly Likely in the Paga Case.