A coalition of business organizations is urging California lawmakers to reject Senate Bill 310, which they say would undermine recent reforms aimed at reducing excessive wage and hour lawsuits against employers. The bill, which was previously stalled in 2025, has returned with new amendments that opponents argue could reverse progress made by the 2024 overhaul of the state’s Private Attorneys General Act (PAGA).
The 2024 PAGA reform was the result of negotiations between business groups and labor representatives. According to a report by employment law firms last fall, the reform led to quicker settlements, more targeted lawsuits, and improved cooperation between employers and employees.
Business leaders involved in crafting the agreement warn that SB 310 would allow attorneys to bypass state oversight and use statutory penalties to pressure businesses into higher settlements. They also argue that small businesses would be exposed to costly litigation instead of using early resolution procedures established in 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 the California Chamber of Commerce, California New Car Dealers Association, California Restaurant Association, and Western Growers Association. More than 120 companies have voiced 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.”
Dave Puglia, President & CEO of Western Growers Association, commented: “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 California Restaurant Association added: “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 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.”
California’s restaurant industry employs nearly 1.4 million workers statewide and generates over $200 billion in sales annually.
