The 3rd District Court of Appeal in Sacramento rejected that argument. The decision has caused new consternation at the chamber, which said in its appeal that the court risks “putting no limits on what money can be exacted and providing a road map for the evasion of Proposition 13’s limits” on increasing taxes.
The problem of PAGA lawsuits threatening small businesses is growing and solutions to deal with incidental violations are obvious. The legislature, to show its support for the state’s valuable small businesses, should create legislation giving small businesses the right to cure minor problems instead of putting businesses at risk for financial ruin.
The Los Angeles City Council took a step Tuesday toward borrowing up to $60 million to pay for legal payouts and court judgments despite a warning by City Controller Ron Galperin that the borrowing proposal is costly and unnecessary.