California lawmakers made the right call this week by allowing Senate Bill 310 to die without a vote — a decision that protects the hard-won PAGA reforms enacted just 18 months ago.

A coalition of business organizations led by the California Chamber of Commerce that fought for those 2024 reforms released a statement Wednesday praising the Legislature’s decision to let the bill miss its passage deadline. Their relief is understandable. SB 310 threatened to reopen the door to the very problems PAGA reform was designed to fix.

“In truth, it should never have come to this,” the coalition said. “In both spirit and substance, SB 310 sought to again open the door to unscrupulous attorneys seeking costly settlements to their frivolous lawsuits — changes that would have done nothing to help employees.”

The Private Attorneys General Act has been a source of frustration for California employers for years. Before the 2024 reforms, businesses faced costly litigation even when they quickly moved to fix minor labor violations and make workers whole. Trial lawyers exploited the system, filing broad claims that inflated settlement costs regardless of actual harm to employees.

Last year’s reforms changed that. They created reasonable pathways for employers to correct problems before litigation spirals out of control, narrowed standing requirements and increased the share of penalties going to employees from 25% to 35%.

The results speak for themselves. As I reported in December, early data showed faster settlements, more focused lawsuits and stronger employer compliance. Defense firms documented significantly reduced penalties, and the state collected nearly $1 million for employees through the new early resolution process in the first year alone.

SB 310 would have undermined all of that progress by creating a new private right of action for wage and hour penalties — essentially handing trial lawyers another tool for extracting higher settlements from employers.

The decision to sideline SB 310 is an affirmation that Sacramento got it righ the first time. PAGA reform was the product of genuine collaboration between the Governor, Legislature and stakeholders. The system is working as intended, benefiting both employers and employees.

The coalition, Fix PAGA, hopes legislators will now accept the landmark PAGA reform as it stands and allow it to continue delivering results across California workplaces.

The coalition includes the California New Car Dealers Association, the California Restaurant Association, the California Retailers Association and the Western Growers Association.

For businesses that have invested in compliance programs and good faith efforts to follow labor law, this week’s news is welcome relief. The reforms remain intact, and the promise of a more balanced system lives on.