BILL ANALYSIS Ó SENATE COMMITTEE ON LABOR AND INDUSTRIAL RELATIONS Senator Tony Mendoza, Chair 2015 - 2016 Regular Bill No: AB 2898 Hearing Date: June 29, 2016 ----------------------------------------------------------------- |Author: |Committee on Labor and Employment | |-----------+-----------------------------------------------------| |Version: |March 1, 2016 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Brandon Seto | | | | ----------------------------------------------------------------- Subject: Private Attorneys General Act of 2004 KEY ISSUE Should the Legislature extend the window for the Labor and Workforce Development Agency (LWDA) to review and investigate Private Attorneys General Act (PAGA) claims before a civil action may be filed? ANALYSIS Existing law Allows, under PAGA, for a private citizen to pursue civil penalties on behalf of the LWDA provided that they inform the LWDA of the alleged violations of the Labor Code and that the LWDA does not pursue the allegations or does not issue a citation within certain time periods (Labor Code §2698-2699.5). Allows aggrieved employees to seek civil penalties for violations that they personally suffered and/or for violations suffered by other current or former employees (Labor Code §2699). Requires that the LWDA notify an aggrieved employee and his/her employer if it intends to investigate an alleged violation within 30 days of an employee providing written AB 2898 (Committee on Labor and Employment) Page 2 of ? notice of an alleged violation (Labor Code §2699.3). Requires that, upon receipt of notice that LWDA will not issue a citation, or if no citation is issued by LWDA within 158 days, the aggrieved employee may commence a civil action under PAGA (Labor Code §2699.3). This Bill Extends the period of time from 30 days to 45 days allowed for the LWDA to notify an aggrieved employee and his/her employer if it intends to investigate an alleged violation. Extends the period of time from 158 days to 173 days upon which, if the LWDA does not issue a citation, the aggrieved employee may commence a civil action under PAGA. COMMENTS 1. Need for this bill? According to the author, the Governor states that due to lack of resources, less than one percent of all PAGA cases are reviewed or investigated. The volume of PAGA cases is as high as 635 notices per month. In addition to statutory changes, the Governor's budget proposes 10 additional positions within the LWDA and the Department of Industrial Relations (DIR) to "stabilize and improve the handling" of PAGA cases. To complement these efforts, this bill would extend the timelines for the LWDA to review alleged PAGA claims. For example, the LWDA would have 45 days to decide whether to investigate a case. Related timeframes for the investigation of PAGA claims would be similarly increased. 2. Proponent Arguments : None received. 3. Opponent Arguments : AB 2898 (Committee on Labor and Employment) Page 3 of ? None received. 4. Prior Legislation : AB 1506 (Hernández) Chapter 455, Statutes of 2015 - amended PAGA to provide an employer with the right to cure a violation of failing to provide its employees with a wage statement containing the inclusive dates of the pay period and the name and address of the employer. This bill was enacted as a response to concerns about PAGA claims being filed for alleged technical violations of an employer's obligation to provide accurate wage statements. SUPPORT None on file OPPOSITION None on file -- END --