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Bill to Create Exemption from Private Attorneys General Act of 2004

Thousands of PAGA lawsuits are filed each year against California businesses

By Chris Micheli, March 4, 2021 7:26 am

Assemblyman Heath Flora (R-Ripon) introduced Assembly Bill 385 to create an exemption from the Private Attorneys General Act of 2004 (PAGA). This bill would amend Section 2699 of the Labor Code. The bill would prohibit an aggrieved employee from maintaining a legal action on behalf of themselves or any other aggrieved employee if all of the following provisions apply:

  • The aggrieved employee has brought an action under this section in conjunction with, or in addition to, claims for monetary damages or penalties for violations of the Labor Code arising out of the same period of employment that occurred between March 4, 2020, and the state of emergency termination date.
  • Those claims for monetary damages or penalties are covered by an enforceable arbitration agreement between the employer and the aggrieved employee.
  • The aggrieved employee and employer knowingly waived their right to enforce that arbitration agreement.

The bill will likely be heard in policy committee in March.

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