Daily Journal Interviews Corinne Spencer on PAGA Reform and Concerns for California Employers

On July 1, 2024, Governor Newsom signed two bills, AB 2228 and SB 92, altering the Private Attorneys General Act (PAGA) to include changes such as penalty caps and an expansion of the “cure process” to help resolve cases early. Employers are now allowed to request an early evaluation conference and a stay at the outset of litigation to allow the parties to discuss the factual allegations and resolve the issue.

In an interview with Daily Journal, Partner Corinne Spencer explained that these conferences could give plaintiffs the opportunity to verify their claims earlier, and have unintended consequences.

“I think it will increase claims against employers,” Spencer said. “The cure process reform helps to create more transparency and agreement between both sides, in which a plaintiff and their experts, or data analysts, might view a case at value. This has created a lot more structure to put concrete numbers and values to the penalties, if there are any at all.”

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