The Private Attorney Generals Act (PAGA) is a scam designed, passed and defended by California’s progressive liberal legislature. It is one of the most powerful weapons in their arsenal in their war on local governments, small businesses and law enforcement. The progressives’ ultimate goal is the Socialist State of California. The casualties of this war are millions of California’s families.
The Private Attorneys General Act (PAGA) authorizes aggrieved employees to file lawsuits to recover civil penalties on behalf of themselves, other employees, and the State of California for Labor Code violations.
This week I attended a gathering of a group of small businesses owners who have organized to file a lawsuit against the state of California to challenge the constitutionality of the PAGA. Their group, CABIA (California Business and Industrial Alliance), was founded by Tom Manzo, the driving force behind this effort.
Following is an example from Tom Manzo’s article: California Leads in Class Action Lawsuits
Here is an example of how skewed this law is. If the employer shorted the employee $ 28.61 on alleged labor law violations civil penalties and personal damages would be $69,508.61. That is 2,430 times the alleged actual damages and I bet you would get a better rate form a loan shark. If the employer has 30 employees the exposure is over $ 2,000,000 and actual damages would be only $ 858.30 to the aggrieved employees. So the trial attorney goes to mediation with the threat of more than $ 2,000,000 and tells the employer you need to settle this as legal expenses to fight could be another million. The trial attorneys know based on their deal with the state they will get 100% of their fees paid, as it comes right off the top of the settlement, usually a third of the total. The balance is then negotiated and what is supposed to happen rarely does, meaning the state takes 75% of the balance and the employees get the remaining 25%. When the balance is settled everything becomes a shroud of secrecy and all of the employers do not want to talk about this as they are afraid they will get hit again.
Tom provides the details of the scam in his article titled “What is PAGA” here:
This scam is costing businesses millions of dollars and leading to closures across the state. This is attack on our businesses just one prong of a multi-prong attack designed by the legislature to hasten our state to socialism. This must be stopped and I applaud citizens like Tom and his group standing up and saying enough is enough.
I am running for the State Senate sd23 (District 23) to put an end to reform wasteful government in Sacramento, end the progressive march towards socialism and Restore the Promise of the California Dream. PAGA is one of many failed pieces of legislation that threatens the future of California’s prosperity.