Valley Business Alliance Sues to End PAGA

The California Business and Industrial Alliance has filed a lawsuit challenging the constitutionality of the California Private Attorneys General Act, or PAGA. Under PAGA, employees may file civil suits on behalf of themselves and other workers against companies that fail to follow California’s labor code. The infractions can range from unpaid overtime to minor violations such as failing to print a business address on employee paychecks. Critics of PAGA say disgruntled employees and opportunistic trial lawyers often use the law to wreak financial havoc on small businesses. The Sunland-based business advocacy group, also known as CABIA, on Wednesday filed a civil complaint on behalf of member businesses against California Attorney General Xavier Becerra. The suit seeks to prohibit Becerra from enforcing PAGA and asks the Superior Court of Orange County to strike down the law. “PAGA, as written and practiced, is unconstitutional,” CABIA wrote in the suit. “With this complaint, we’re asking the state to enforce its own laws – rather than transferring the state’s power to private attorneys who operate for their own personal gain.”