Need to Know: PAGA Waivers Need a Legislative Solution  

In 2018, UCON was instrumental in securing PAGA waivers for construction companies under the law and in our union agreements. However, securing the waiver came at the price… The existing law enabling PAGA waivers contains a sunset clause, meaning collective bargaining agreements (CBAs) entered into after January 1, 2025 would not be eligible for PAGA waivers under the law. UCON is taking the lead for the industry to find a spot bill that would eliminate or extend the sunset.  

For those unfamiliar, the Private Attorney General Act (PAGA) allows attorneys to stand in the shoes of the state and file claims against employer for alleged wage and hour violations. Unfortunately, PAGA has misused by ambulance chasing attorneys resulting in thousands of claims resulting in hundreds of millions of dollars of losses for employers since PAGA’s inception 20 years ago.  

Dozens of contractors in our industry commonly paid out six (6) or even seven (7) figure sums for items as inconsequential as paystub violations and have faced predatory class actions from former and current employees.  

Since UCON’s secured PAGA waivers and CBA provisions prohibiting class action lawsuits, many PAGA claims have been eliminated or mitigated.

If you’d like to learn more about to better protect your company against PAGA claims or wage and hour lawsuits, check out the recording of UCON’s seminar – Legal Armor: How to Harness Your Union Agreement against PAGA and Legal Claims, or contact UCON's Labor & Member Services Team at (925) 855-7900 or laborteam@unitedcontractors.org.  

UCON will continue to keep our members updated on our efforts to secure continuing PAGA waiver protections.