A coalition of business organizations is urging California lawmakers to reject Senate Bill 310, a measure they say would reverse progress made in curbing abusive wage and hour lawsuits. The bill, which was reintroduced after failing to advance in 2025, is seen by opponents as a threat to the reforms established under the state’s Private Attorneys General Act (PAGA) overhaul in 2024.
Last year, a report from employment law firms indicated that the PAGA reform led to quicker settlements, more focused litigation, and better cooperation between employers and employees. Business groups argue that SB 310 would undermine these improvements by allowing attorneys to bypass state oversight and use statutory penalties to pressure businesses into higher settlements. They also warn that small businesses could face increased litigation costs rather than benefiting from early resolution processes created by the recent reform.
Jennifer Barrera, President & CEO of the California Chamber of Commerce, stated: “SB 310 undermines the PAGA deal in 2024. The recent amendments do not change this. Just as businesses are beginning to see benefits from the effort two years ago to curb lawsuit abuse, legislators are offering unscrupulous lawyers a new way to game the system.”
The coalition includes organizations such as the California Chamber of Commerce, California New Car Dealers Association, California Restaurant Association, and Western Growers Association. More than 120 companies have expressed opposition to SB 310.
Brian Maas, President of the California New Car Dealers Association, said: “We accomplished so much less than two years ago in the landmark reform proposal endorsed by the Governor and both houses of the Legislature. We urge the Senate to stand by that agreement.”
Western Growers Association President & CEO Dave Puglia added: “The costs to businesses, and ultimately customers, from frivolous lawsuits are staggering. SB 310 would easily re-open those floodgates.”
Jot Condie, President & CEO of the California Restaurant Association, commented: “Simply put, SB 310 is bad for business. There were good reasons it didn’t move forward last year, and it shouldn’t move forward in 2026.”
Rachel Michelin, President of the California Retailers Association said: “The reemergence of this bill is a bad case of legislative déjà vu. Lawsuit abuse was rampant before the PAGA reform we achieved and now is not the time to go backwards.”
The business groups maintain that upholding recent reforms is essential for stability within California’s business environment.
