PAGA is the new class action in California. Uh even though it was enacted back in 2004, it was seldom used
because class actions were more favorable to the plaintiff’s bar. But as employers have followed our advice to implement arbitration policies that
require individual arbitration and that preclude class actions, the plaintiff’s bar has embraced Paga. PAGA is a bounty
hunter statute that allows one employee to file a lawsuit seeking penalties
based on violations that that employee suffered, but also that may have been suffered by other employees. And those
penalties can add up quickly, just the same as a class action lawsuit damage can add up quickly. So unfortunately,
California has tried to make it very difficult to move those Paga claims into arbitration. And even if you succeed at
that, there may be a tail risk after the arbitration that the Paga employee
plainif can go back to court to seek those additional penalties for other people.