California lawmakers, interest groups assess impact of Supreme Court PAGA decision
Good morning and welcome to the A.M. Alert!
REACTIONS TO THE SCOTUS DECISION ON PRIVATE ATTORNEYS GENERAL ACT (PAGA)
On Wednesday, the U.S. Supreme Court ruled in favor of California employers by limiting an 18-year-old state law allowing groups of employees to sue even if their workplace requires individual arbitration.
Business groups like the California Chamber of Commerce touted the 8-1 decision. In a statement, the business group said it was pleased but not surprised that the court found PAGA is preempted by federal law.
“As the court pointed out, California’s (Private Attorneys General Act) law unduly circumscribes the freedom of parties to determine the issues subject to arbitration and the rules by which they will arbitrate. Businesses, workers and consumers will benefit from this ruling going forward,” CalChamber said.
The news was less well-received by California Attorney General Rob Bonta, who said that every worker is entitled to dignity and respect on the job.
“For decades, PAGA has been a critical part of the state’s efforts to help make that a reality. Whether it’s protecting overtime pay or taking on unsafe working conditions, PAGA strengthens California’s ability to tackle labor violations,” Bonta said in a statement.
But Bonta added that “key aspects of PAGA remain in effect and the law of our state. Workers can continue to bring claims on behalf of the State of California to protect themselves and, in many instances, their colleagues all across California. At the California Department of Justice, we will continue to stand with workers to fight for their rights everywhere.”
The decision was met with caution by the Consumer Attorneys of California, who said in a statement that PAGA was “a crucial pathway to justice” for many employees.
“Today’s Supreme Court’s decision is complex and while we continue studying it, we will fight to ensure workers have the broadest possible avenue to pursue justice against employers who violate their rights,”said CAOC’s Lea Ann Tratten.
Former lawmaker and incoming California Labor Federation head Lorena Gonzalez tweeted on Wednesday that the decision affords her former colleagues in the Legislature the opportunity to craft a new law.
One lawmaker interested in new legislation was Sen. Dave Cortese, D-San Jose, who chairs the Senate Labor, Public Employment and Retirement Committee.
“We are still studying the Supreme Court ruling, and I am prepared to author legislation to respond; I believe that this ruling has provided a roadmap as to how we can create for employees a new pathway to legal standing as well as safeguard the protections that state law puts in place for our workers...the Legislature must and will intervene.” Cortese said in a statement.
QUOTE OF THE DAY
“Welcome to our newest Assemblymember — David Alvarez of #AD80! David’s wealth of local government, public service, and small business experience will be a huge benefit to the people of California. I also appreciate his passion for environmental justice and arts programs. #CALeg”
- Assembly Speaker Anthony Rendon, D-Lakewood, via Twitter.
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