Senate Bill 310 Threatens to Undermine Historic PAGA Reforms: What California Employers Need to Know
By Employer Guidance Group, Your Trusted Partner in Workplace Compliance for Over 20 Years
On May 23, 2025, the California Senate Appropriations Committee advanced Senate Bill 310 (SB 310), a piece of legislation that threatens to unravel the carefully negotiated reforms to the Private Attorneys General Act (PAGA) enacted just last year. For California employers, this development signals a potential return to the litigation-heavy environment that PAGA reforms sought to address. As a trusted resource for employers navigating California’s complex labor laws for over two decades, we’re here to break down what SB 310 means, why it matters, and how you can prepare your business for what’s next.
Employer Guidance Group founders have spent 20 years helping businesses stay compliant, manage risks, and thrive in California’s challenging regulatory landscape. The passage of SB 310 through the Senate Fiscal Committee is a critical moment for employers, and we’re committed to providing you with the clarity and strategies you need to protect your business.
The Background: Why PAGA Reforms Were Necessary
To understand the significance of SB 310, we must first revisit the context of PAGA and the landmark reforms passed in 2024. Enacted in 2004, PAGA allowed employees to file lawsuits on behalf of themselves and other workers for alleged labor code violations, acting as “private attorneys general.” While the intent was to empower workers to enforce labor laws, the reality was far different.
Over the past two decades, PAGA became a lightning rod for litigation abuse. According to a report by former leaders of California’s labor and occupational safety agencies, PAGA lawsuits resulted in nearly $10 billion in court awards between 2013 and the 2024 reforms. However, due to exorbitant attorney fees, workers often received only a small fraction of these awards—sometimes as little as one-third of the compensation compared to claims handled by state regulators. Meanwhile, employers faced skyrocketing legal costs, prolonged litigation, and the constant threat of frivolous lawsuits.
The numbers tell a stark story. By 2014, the Labor and Workforce Development Agency was receiving approximately 4,000 PAGA notices annually—a staggering 1,000% increase in lawsuits since PAGA’s inception. These cases took twice as long to resolve as claims processed through state agencies, bogging down businesses and delaying justice for workers.
The 2024 PAGA reforms, achieved through a historic agreement between business and labor groups, were a direct response to these challenges. Supported by the California Chamber of Commerce, labor unions, and a broad coalition of stakeholders, the reforms aimed to:
• Reduce litigation abuse by streamlining processes and limiting frivolous claims.
• Ensure fairer outcomes for workers by increasing the share of penalties they receive.
• Lower costs for employers by reducing the scope of penalties and encouraging compliance over litigation.
The reforms were a triumph of bipartisan collaboration, passing unanimously in both houses of the California Legislature and earning Governor Gavin Newsom’s signature. They also led to the withdrawal of a ballot initiative backed by hundreds of thousands of California voters, signaling widespread public support for change.
But now, less than a year later, SB 310 threatens to undo this progress.
What is Senate Bill 310?
Introduced by Senator Scott Wiener (D-San Francisco), SB 310 would create a new private right of action for wage and hour penalties, effectively bypassing the 2024 PAGA reforms. According to the California Chamber of Commerce and the FixPAGA Coalition—a group representing major business associations like the California New Car Dealers Association, California Restaurant Association, Western Growers Association, and California Retailers Association—SB 310 would open the door for trial attorneys to exploit penalties in meritless cases, reigniting the litigation frenzy that the reforms sought to curb.
The bill’s advancement through the Senate Appropriations Committee on May 23, 2025, has raised alarm bells among employers and business advocates. The FixPAGA Coalition issued a strongly worded statement, describing SB 310 as a “deeply flawed proposal” that undermines the “thoughtful and balanced approach” of the 2024 reforms. They warn that the bill could “generate a flurry of frivolous lawsuits,” placing new burdens on businesses still recovering from the economic challenges of recent years.
For employers, SB 310 represents a potential return to the pre-reform era of PAGA, where trial attorneys leveraged technical violations to extract hefty settlements, often with little benefit to workers. This is particularly concerning for small and medium-sized businesses, which lack the resources to withstand prolonged legal battles.
Why SB 310 Matters for Employers
At Employer Guidance Group, we’ve seen firsthand how California’s labor laws can make or break a business. SB 310 is a wake-up call for employers across industries, from retail and hospitality to agriculture and manufacturing. Here’s why this bill matters:
1 Increased Litigation Risk: SB 310 would create new avenues for trial attorneys to file wage and hour lawsuits, even for minor or technical violations. This could lead to a surge in PAGA-like claims, forcing employers to divert resources to legal defense rather than growth and innovation.
2 Undermining PAGA Reforms: The 2024 reforms were designed to balance the interests of workers and employers while reducing litigation abuse. SB 310 threatens to erode these gains, potentially reinstating the costly and inefficient system that plagued businesses for two decades.
3 Higher Costs for Compliance and Defense: Defending against PAGA lawsuits is notoriously expensive, with legal fees often dwarfing the penalties themselves. SB 310 could exacerbate these costs, particularly for businesses already stretched thin by rising operational expenses.
4 Erosion of Trust in Legislative Agreements: The 2024 PAGA reforms were the result of months of negotiations between business and labor groups, culminating in a rare moment of consensus. The advancement of SB 310 suggests that such agreements may be fleeting, creating uncertainty for employers who rely on stable regulations to plan for the future.
5 Disproportionate Impact on Small Businesses: Large corporations may have the resources to weather a new wave of lawsuits, but small and medium-sized businesses do not. For these employers, SB 310 could mean the difference between staying afloat and closing their doors.
The FixPAGA Coalition’s Response
The FixPAGA Coalition, led by the California Chamber of Commerce, has been vocal in its opposition to SB 310. In their May 23 statement, coalition leaders—including Jennifer Barrera (California Chamber of Commerce), Brian Maas (California New Car Dealers Association), Jot Condie (California Restaurant Association), Dave Puglia (Western Growers Association), and Rachel Michelin (California Retailers Association)—expressed dismay at the Senate’s decision to advance the bill.
“What a difference a year makes, and not for the better,” the coalition wrote. They accused Senate leadership of treating the 2024 PAGA agreement as though it were “written with invisible ink,” arguing that SB 310 represents a “stunning about-face” from the reforms designed to curb litigation abuse. The coalition urged the Senate to honor the 2024 agreement and reject SB 310 when it reaches the Senate floor for a vote in June 2025.
This response underscores the broader implications of SB 310—not just for employers, but for the integrity of California’s legislative process. When carefully negotiated agreements are undermined, it erodes trust in the system and creates uncertainty for all stakeholders.
What’s Next for SB 310?
SB 310 is now headed to the Senate floor for a vote expected in June 2025. If it passes the Senate, it will move to the Assembly for further consideration. Governor Newsom, who signed the 2024 PAGA reforms into law, will ultimately have the power to sign or veto the bill if it reaches his desk.
Given the unanimous support for the 2024 reforms, there is hope that lawmakers will recognize the risks of SB 310 and uphold the agreement that balanced the needs of workers and employers. However, the bill’s advancement through the Appropriations Committee suggests that political pressures may be at play, and employers must remain vigilant.
How Employers Can Prepare: Actionable Steps
At Employer Guidance Group, we’ve spent 20 years helping California employers navigate challenges like PAGA and stay ahead of regulatory changes. While the outcome of SB 310 remains uncertain, there are steps you can take now to protect your business:
1 Strengthen Compliance Programs:
◦ Conduct a comprehensive audit of your wage and hour practices, including timekeeping, meal and rest breaks, overtime calculations, and payroll records.
◦ Train managers and HR staff on California labor laws to ensure consistent compliance.
◦ Partner with experienced HR consultants or legal counsel to identify and address potential vulnerabilities.
2 Document Policies and Procedures:
◦ Maintain clear, written policies on wages, hours, and workplace practices, and ensure employees acknowledge receipt of these policies.
◦ Keep detailed records of employee hours, breaks, and pay to demonstrate compliance in the event of a claim.
3 Stay Informed:
◦ Monitor updates on SB 310 and other labor-related legislation through trusted sources like Employer Guidance Group or the California Chamber of Commerce.
◦ Join industry associations to stay connected with peers and advocate for employer-friendly policies.
4 Engage with Advocacy Groups:
◦ Support organizations like the FixPAGA Coalition, which are working to protect the 2024 reforms and oppose SB 310.
◦ Share your concerns with legislators about the impact of SB 310 on your business and industry.
5 Prepare for Potential Litigation:
◦ Review your insurance coverage, including Employment Practices Liability Insurance (EPLI), to ensure protection against wage and hour claims.
◦ Establish a relationship with employment law attorneys who can provide rapid response if a PAGA or similar claim arises.
6 Communicate with Employees:
◦ Foster open communication with your workforce to address concerns before they escalate into legal claims.
◦ Consider implementing employee feedback mechanisms, such as surveys or regular check-ins, to identify and resolve issues early.
Why Trust Employer Guidance Group?
Employer Guidance Group has been a beacon for California employers navigating the complexities of labor law compliance. Our team of experts combines deep knowledge of state regulations with practical, real-world solutions tailored to your business. Whether you’re a small retailer, a family-owned farm, or a growing tech startup, we’re here to help you stay compliant, reduce risks, and focus on what you do best—running your business.
Our track record speaks for itself:
• Proven Expertise: We’ve guided thousands of employers through PAGA claims, wage and hour disputes, and regulatory changes.
• Tailored Solutions: We understand that every business is unique, and we customize our advice to fit your industry and needs.
• Proactive Approach: We don’t just react to changes—we help you anticipate and prepare for them, keeping you one step ahead.
The Bigger Picture: A Call to Action
SB 310 is more than just a piece of legislation—it’s a test of California’s commitment to fair and balanced labor policies. The 2024 PAGA reforms represented a rare moment of unity, bringing together business and labor to create a system that works for everyone. Undermining those reforms risks returning California to an era of rampant litigation, where trial attorneys profit at the expense of workers and employers alike.
As the Senate prepares to vote on SB 310, we urge employers to take action. Contact your legislators, share your story, and advocate for policies that support both workers and businesses. At Employer Guidance Group we’re here to support you every step of the way, from compliance audits to advocacy strategies.
Conclusion: Stay Vigilant, Stay Prepared
The passage of SB 310 through the Senate Appropriations Committee is a reminder that California’s labor landscape is ever-changing. While the 2024 PAGA reforms marked a significant step forward, SB 310 threatens to take us backward. By staying informed, strengthening compliance, and engaging with advocacy efforts, you can protect your business and help shape a fairer future for California’s workplaces.
At Employer Guidance Group, we’re committed to being your partner in this journey. Contact us today to learn how we can help you navigate SB 310, comply with PAGA, and thrive in California’s dynamic business environment. Together, we can face these challenges and build a stronger, more resilient workplace.
For more information or to schedule a consultation, visit [Your Website] or call [Your Contact Number]. Stay tuned to our blog for updates on SB 310 and other critical issues affecting California employers.