Reform of Private Attorneys' General Act Could Mean Sweet Relief for the Professional Employer Organization Industry: 3 Steps to Save Up to 85% on California Litigation Costs

[...]the focus of this article is on the most exciting prospect for PEOs: if PEO customers take "all reasonable steps" to comply with law ahead of time, they can achieve significant penalty reductions for any alleged violations of the law, reducing risk for customers and PEOs. The proposed revision defines "all reasonable steps" to include: * Disseminating lawful written policies; * Training supervisors on the applicable law; * Taking appropriate corrective action with supervisors; and * Conducting periodic payroll audits and taking action in response. Training Programs and Written Policies Creating written policies and offering workplace training is right in the wheelhouse of many PEOs. * You will not have off-the-shelf resources for all of the areas of the law that are most critical when it comes to PAGA (especially with regard to some wage and hour issues), so work with your PEO counsel to develop those. * These written policies or training programs will be strictly scrutinized by plaintiffs' counsel who will be stinging at the dilution of their favorite weapon.