A coalition of business organizations is urging California lawmakers to reject Senate Bill 310, warning that the proposed legislation could reverse recent reforms intended to reduce abusive wage and hour lawsuits against employers.
Senate Bill 310, which did not advance in 2025, has returned with new amendments. Business groups argue that the bill would increase frivolous litigation by undermining the Private Attorneys General Act (PAGA) reforms enacted in 2024. These reforms were developed through negotiations between business and labor groups to streamline dispute resolution and reduce unnecessary lawsuits.
According to a report released last fall by employment law firms, the PAGA reform has already resulted in faster settlements, more targeted legal actions, and improved cooperation between employers and employees.
Jennifer Barrera, President & CEO of the California Chamber of Commerce, said: “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.”
Business leaders say SB 310 would allow attorneys to bypass state oversight and use statutory penalties as leverage for higher settlements. They also warn that small businesses could face increased litigation costs instead of using early resolution procedures established under the previous reform.
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 voiced opposition to SB 310.
Brian Maas, President of the California New Car Dealers Association stated: “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 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 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 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 CRA notes that restaurants play a significant role in California’s economy with over $200 billion in sales annually and nearly 1.4 million workers employed statewide.
