626-795-6001
Larson & Gaston, LLP, a Pasadena law firm dedicated to serving businesses in California, today addressed the use of PAGA reform to help California businesses strategically reduce large PAGA penalties.
“By helping clients review their wage and hour practices, our personalized approach may protect them from unnecessary or excessive PAGA penalties related to future PAGA claims,” said Victor Cosentino, partner at Larson & Gaston, LLP.
PAGA, or the Private Attorneys General Act, was created in 2004 by the California Legislature to allow employees to file lawsuits on behalf of the state for Labor Code violations and then to share in the proceeds. While this gave agency to wronged employees, PAGA also created an unbalanced burden on employers and encouraged litigation, whether justified or not. The cost of these lawsuits puts undue financial strain on businesses, both large and small.
At the beginning of July of this year, California Governor Gavin Newsom signed into law new legislation that strengthened worker protections while incentivizing employers to review their compliance with California’s complex Labor Code and address potential violations. Talking advantage of the changes from this PAGA reform legislation allow employers to both limit the size of penalties and reduce the impact of a lawsuit.
“For businesses, it’s been difficult to defend themselves from a PAGA penalty,” Cosentino said. “Now that there’s new legislation in place, our firm can help employers take advantage of these changes and defend themselves from unnecessary PAGA penalties.”
If reasonable steps are taken to address labor code violations, penalties can be reduced by 70-85%.
Given that penalties can involve weekly fines per violation per employee, Larson & Gaston believes that aggressively using the tools the new legislation provides could significantly reduce or limit penalties.
California businesses can contact Larson & Gaston to learn more about this legislation that provides additional safeguards that can avoid, limit or reduce PAGA penalties.
Larson & Gaston, LLP based in Pasadena, California, provides legal representation in the areas of business, real estate and construction, transportation, employment, and insurance law.
This communication is an advertisement. Victor Cosentino, a partner at Larson & Gaston, LLP, is responsible for this communication.