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
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          |Author:    |Committee on Labor and Employment                    |
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          |Version:   |March 1, 2016                                        |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Brandon Seto                                         |
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                   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  







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               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  
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            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


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