California’s Private Attorneys General Act (PAGA) has devastated small businesses across the Golden State. Two cases illustrate how PAGA can be exploited, threatening the livelihoods of business owners over minor infractions.
Woodstock’s Pizza’s PAGA Nightmare: Woodstock’s Pizza, a staple in California with eight locations, faced a staggering $1.5 million lawsuit for trivial mistakes, including a paystub wording error and not compensating for 5-second Covid temperature checks. This case highlights how easily businesses can be pushed to the brink over negligible or accidental issues.
The So Cal Land Maintenance Inc. Predicament: Steve Guise’s business faced a PAGA lawsuit after firing an employee for drinking on the job, a decision that now risks bankrupting his company. This situation underscores how PAGA can escalate into existential threats for businesses over standard disciplinary actions.
The ordeals faced by these business owners demonstrate how desperately PAGA reform is needed in California.