Solutions at the speed of now

On July 1, 2024, Governor Gavin Newsom signed legislation to reform California’s Private Attorneys General Act (“PAGA”).  These changes aim to balance PAGA enforcement with fairness to employers, offering new avenues for curing violations and reducing penalties.  Notably, employers can now save up to 85% on penalties by taking “reasonable steps” to be in compliance with alleged labor code violations. Below is an outline of the key aspects of the reform and a how-to guide on how you can benefit from these changes.

On Wednesday, July 3, a Texas federal judge granted a preliminary injunction preventing the FTC’s rule barring most non-competes from taking effect in September.  In the meantime, the court will consider if the FTC has authority to issue the sweeping ban. The court’s order indicates that it intends to rule on the ultimate merits of the challenge by August 30, but a review so far suggests the ban will be struck down. So for the time being, employers should continue with their non-compete strategies until they hear otherwise.

On June 20, 2024, the California Occupational Safety and Health (“Cal/OSHA”) Standards Board voted to approve the proposed Indoor Heat Illness Prevention in Indoor Places of Employment Standard (“Indoor Heat Standard”).  The latest draft of the approved Indoor Heat Standard is available here.  Below, we discuss some of areas for employers to focus on.  With hotter days ahead, now is the time to make sure you are complying with the Indoor Heat Standard.  We recommend reaching out to your legal counsel to ensure compliance.