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The Fight to Replace PAGA

Help Us Replace the Private Attorneys General Act (PAGA)

PAGA costs dealers and other businesses hundreds of millions of dollars each year in shakedown lawsuits by trial attorneys. Employers are extorted, employees face worse outcomes, and the attorneys win. Replacing PAGA helps everybody while cutting out the predatory law firms.

Now is your chance to help businesses, employees, and even the state by defeating PAGA once and for all.


That’s the average cost to employers for a PAGA settlement

PAGA Cases Continue to Trend Upward

Since its inception in 2004, the number of filings each year has exploded. In 2016 alone, annual PAGA cases had increased by over 1,440%.

Since its inception in 2004, the number of filings each year has exploded. In 2016 alone, annual PAGA cases had increased by over 1,440%.

What’s worse? The constant stream of change to labor laws during the COVID-19 era has created a situation that is virtually impossible for any business to contend with and ripe to be taken advantage of by preying trial attorneys.

PAGA has become more than just a boutique service. Cases generate enough opportunity for attorneys that many even specialize in PAGA settlements. In fact, the top 5 firms specializing in PAGA have generated 4,031 cases alone.

PAGA isn’t isolated by geography. If you operate a business in California, you are vulnerable to a PAGA attack. If you haven’t been targeted yet, your friends, neighbors, or peers likely have.

So what will this PAGA reform initiative actually do?

In simple terms, this ballot initiative will cut third-party trial attorneys out of the picture. When an employee feels they have been wronged by their employer, they can take their case directly to the state Labor and Workforce Development Agency (LWDA) and have their grievances heard, with the state mediating the dispute. This initiative empowers the LWDA to handle these cases more efficiently with better outcomes for all parties. Employees can still choose to file a legal claim with an attorney, but it would no longer be a PAGA case.

What may come shockingly is that, when compared to PAGA cases handled by attorneys, cases handled by the state result in less financial payout by employers and greater rewards for employees, all in a quicker, more efficient process.

Across the board, parties directly involved in PAGA disputes are better off when trial attorneys are kept out of the process. Even the State of California comes out ahead.

The road ahead will not be an easy one. With months of hard work ahead, we can defeat PAGA and put an end to the turmoil it continues to bring against California’s businesses.

By making a donation to CNCDA you will help to demonstrate California’s new car dealers’ leadership in taking this issue head on, inspiring countless others to join our cause.

Contributions are not tax deductible. Your contribution will likely be used to support voter approval of The Fair Pay and Employer Accountability Act of 2022 (AG# 21-0027).  Funds contributed through this link may also be retained and spent on other ballot measures at the discretion of CNCDA leadership.
Paid for by California New Car Dealers Association Issues PAC.

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