For the business community, the difficulties of the Private Attorneys General Act (PAGA) are similar to what business faced under the burden of workers compensation costs over a decade ago. Small businesses particularly had to cope with workers comp costs that stood at twice the national average threatening the viability of many establishments.
While workers comp more universally hit the business community, the threat of million dollar lawsuits over minor labor code infractions generated under the PAGA law is spreading throughout the business community, threatening businesses while offering little to workers.
Technical infractions or misunderstandings of the extensive labor code can result in million dollar lawsuits that threaten a business’s existence while rewarding employees little of the settlement dollars but enrich attorneys who bring the lawsuits.
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