Reform of the Private Attorneys General Act (PAGA) was one of the more encouraging things that happened in Sacramento in 2024. It capped penalties on employers who quickly took steps to fix policies and practices — and make workers whole — after notice of a potential labor violation.

The California Chamber of Commerce (CalChamber) is now sounding the alarm on a new bill introduced this session that would give trial lawyers another route for fleecing employers through PAGA.

SB 310, authored by Scott Wiener (D-San Francisco), creates a new private right of action for wage and hour penalties. The CalChamber expects trial lawyers will attach this new civil action “to every boilerplate claim they file to inflate settlement costs.”

SB 310 passed the Senate Judiciary Committee on Tuesday on a 10-2, party-line vote. Sen. Anna Caballero (D-Merced) didn’t cast a vote on SB 310.

“As an example of how law firms abuse litigation, in February, the Labor and Workforce Development Agency required one law firm to refile more than 130 PAGA cases. If passed, SB 310 hands such firms a new procedural tool for extracting higher penalties from employers,” according to the CalChamber.

The coalition opposing SB 310 includes the California New Car Dealers Association, California Restaurant Association, California Retailers Association, Western Growers Association, plus other employer groups and local chambers of commerce.