The California Business and Industrial Alliance has officially launched the CABIA Foundation, a 501(c)3 which exists for two purposes:

  • To provide legal assistance on labor law compliance to small employers who can’t afford it;

  • To support independent research on the costs of California’s Private Attorneys General Act (PAGA).

The Foundation’s first project is to develop and release the most-comprehensive study yet on the impact of PAGA. Once the study is completed, the resulting data will be put into a searchable database made available on our website. It will be the most sophisticated educational tool on the effects of PAGA ever released.

Specifically, the report will provide important data in response to a claim by the UCLA Labor Center that “critiques of PAGA have not been accompanied by empirical evidence.” The report will provide an evaluation of how the Agency is using current PAGA funds and the number of cases that have been reviewed internally, along with the following information:

  • Average total administrative and external case amount;

  • Average administrative and external award amount;

  • Average administrative and external case penalties;

  • Average number of employees per administrative and external case;

  • Average award per employee per administrative and external case;

  • Average attorneys’ fees per (external) case;

  • Average litigation fee per (external) case;

  • Average original plaintiff award or incentive per (external) case;

  • Average settlement amount paid to settlement administrator per (external) case;

  • Average time elapsed from case start date to settlement date per administrative and external case.

This research will more closely analyze PAGA and whether it is delivering the intended benefits to employees and the state. Our hope is that this comprehensive report will inform legislative action on PAGA in the future, and continue to help level the playing field for California’s small-and medium-sized businesses.