Gavin Newsom Wants to Curb a Labor Law That Cost Businesses $10 Billion

By Eliyahu Kamisher, Josh Eidelson and Andrew Oxford : yahoo – excerpt

(Bloomberg) — For two decades, a California law has helped workers sue the world’s biggest companies. Drivers for Uber Technologies Inc. won a $20 million settlement, Google employees secured $27 million over complaints of free-speech violations, and Walmart Inc. agreed to pay $65 million for allegedly not providing seating to their cashiers…

Now, Governor Gavin Newsom is quietly overseeing talks about changing that law after prodding from some of California’s largest business interests, who say a cascade of progressive policy wins in the state – like raising the minimum wage for fast-food workers to $20 an hour and increasing paid sick days — are eating away at their bottom lines.

Newsom’s office has brought together the state’s powerful California Chamber of Commerce with the California Labor Federation to hash out a compromise over the Private Attorneys General Act, or PAGA, people familiar with the negotiations said. The law has cost big and small businesses $10 billion over the past ten years, according to one study, and is viewed by labor advocates as a model of worker protection.

The negotiators are in a race against time: June 27 is the deadline to strike a measure from Californians’ November ballot that would give voters the opportunity to repeal the law. The Chamber of Commerce is negotiating on behalf of a broad alliance, which includes the billionaire owner of the Wonderful Company, Stewart Resnick, car dealership owners, Walmart and McDonald’s Corp., along with small businesses across the state. The business coalition committed more than $31 million to entities backing the ballot measure, including the signature-gathering effort and an advertising blitz…(more)