Businesses, Labor Unions Reach Deal to Toss California’s Ballot Initiative on Workplace Lawsuits

The governor and lawmakers mediated the deal to scrap a measure that would reform PAGA, a law enabling employees to sue over wage theft and safety violations.

A waiter carries food at The Farmhouse restaurant in Newport Beach, Calif., on Sept. 9, 2020. John Fredricks/The Epoch Times

With days to go before the June 27 deadline to pull eligible voter initiatives from the November ballot, a deal was reached between labor unions, business groups, and lawmakers June 18 to remove a proposal to reform a state law allowing employees to file lawsuits against employers for workplace violations.

A list of trade groups, chambers of commerce, and more than 50 small businesses support the ballot initiative to reform the Private Attorney General Act—better known as PAGA. Reform proponents said PAGA litigation caused some businesses to fail because they could not afford the legal costs.