The California Business and Industrial Alliance has ended discussions with the California Labor Federation to co-sponsor a bill to reform the Private Attorney Generals Act, also known as PAGA, according to an email the Sunland-based organization sent to its members on Monday.
Under the PAGA law, 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 often use the state labor law to wreak financial havoc on small businesses. In response the alliance, also known as CABIA, had hoped to pass a bipartisan bill to protect businesses from what it says are unwarranted fines.
The alliance plans to continue working to pass a reform by the end of Gov. Jerry Brown’s final term in January.
A labor-backed bill to reform PAGA, which would allow union construction workers to be exempted from the law, has been passed by the Assembly and is currently working its way through the California Senate.