Will the Door to Mass Claims Close?
Publication | 01.10.23
A series of recent California Supreme Court decisions has led to an explosion of PAGA claims in state and federal courts
A recent NDCA court decision left the door open to future mass claims under the state’s Private Attorneys General Act, despite a June decision by the U.S. Supreme Court that some hoped would spell the end of this burgeoning area of litigation, says Crowell & Moring partner Christopher Banks.
PAGA, enacted in 2004, allows workers to act as state labor code enforcers, in a sense “deputizing” them to bring claims on behalf of themselves along with other employees. The law imposes penalties of up to $100 for each initial violation and up to $200 for each subsequent violation, and plaintiffs routinely ask for tens to hundreds of millions of dollars in penalties in PAGA cases. Defendants may also have to cover plaintiffs’ attorneys’ fees.
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