Opinion: California businesses worse off because of PAGA
In civilized societies, the idea of vigilante justice is frowned upon because those carrying out “justice” lack oversight from both voters and elected officials. That’s why most states avoid such policies.
The separation of powers is a foundational element of California’s constitution. Yet under PAGA, the legislative branch has forced the executive branch to turn over its power to private attorneys who have no obligation to the people. Currently, the LWDA reviews less than 1% of cases before they are tossed to PAGA litigants. There is almost no oversight on the PAGA system.PAGA allows private attorneys to enforce the state’s 1000-page labor code by filing lawsuits on behalf of employees.
Despite workers receiving significantly larger rewards under LWDA-decided cases, employers pay out way less. The average LWDA case costs employers an average of $790,000 while the average PAGA-decided case costs employers $1.1 million in total fees. In an average PAGA-decided case, the trial attorney receives more than $372,000. It’s no surprise that one PAGA attorney put a custom “MR PAGA” license plate on his Rolls Royce.
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