(Sacramento, CA) – Senator Thomas J. Umberg (D-Santa Ana), Chair of the California Senate Judiciary Committee, issued the following statement today in response to Governor Gavin Newsom signing into law his significant SB 92 to reform California’s Private Attorney Generals Act:

“This is a monumental reform that came about because of compromise with the various stakeholders – the California Chamber of Commerce, the Consumer Attorneys of California, the California Labor Federation and all others – who came together to reform PAGA. I congratulate all the stakeholders on this reform…this is precisely how government should work with all entities at the table negotiating in good faith on behalf of the people and businesses of California.” 

In 2004, the California Legislature passed the Private Attorneys General Act (PAGA) to bolster the State’s labor enforcement capabilities. Under existing law, PAGA enables aggrieved employees to enforce the California Labor Code by pursuing lawsuits against employers to recover civil penalties on behalf of themselves and other employees for violations of state law. PAGA cases are most often filed to address major labor code violations and enforce fundamental labor rights such as overtime, minimum wage, and sick leave. 

In addition to limited public enforcement resources, the increased use of arbitration clauses has prevented aggrieved workers from filing individual or class action lawsuits against their employer, instead requiring them to go through arbitration, which some believe historically favors employers. Courts have also ruled that workers cannot even pursue individual wage adjudication claims through the Labor Commissioner if they have signed a forced arbitration clause. Researchers estimate that as high as 80% of private-sector, non-union workers are subject to these clauses, frequently leaving PAGA as their only option for recourse.

Since its enactment, PAGA has served as a critical enforcement tool, reflecting the reality that the State’s labor enforcement agencies often lack the resources to investigate and take action against every violation. However, two decades since its enactment serious flaws in the PAGA have come to light due to some bad actors. Under the current system, the aggrieved employee often receives little compensation. Furthermore, state data shows that it takes 310 more days to resolve a PAGA case compared to a state investigated case. Additionally, family-run small businesses, non-profits, local governments, school districts, labor unions and thousands of other employers have become major targets for lawsuits, often for minor technical violations.

In order to address these concerns, Senator Umberg’s Senate Bill 92, along with its companion bill, Assembly Bill 2288 (Kalra), will enact meaningful reforms to PAGA to ensure workers retain a strong tool to resolve labor claims and receive fair compensation while simultaneously curtailing abuses and unjust lawsuits that hurt employers.

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Senator Thomas Umberg represents the 34th Senate District, which includes the cities of Anaheim, Buena Park, Fullerton, Garden Grove, La Habra, Orange, Placentia, and Santa Ana in Orange County as well as South and East Whittier in Los Angeles County. Umberg is a retired U.S. Army Colonel and former federal prosecutor. He and his wife, Brigadier General Robin Umberg, USA (ret.), live in Orange County.