Gil Diekmann Quoted in The Recorder
“Defense wants more Class-y PAGA Suits”

Gil Diekmann was quoted in the article, “Defense wants more Class-y PAGA Suits,” published in the August 15, 2007 issue of The Recorder. The article reports that attorneys are asking the California Supreme Court to restrict lawsuits brought under the Private Attorneys General Act (PAGA), which allows employees to sue over state Labor Code violations, a power that had been reserved to the state’s labor commissioner. Plaintiffs, if successful, can recover $100 to $200 per employee for each pay period in which a violation occurred.

Gil, who is not involved in the case, said typical wage-and-hour suits are decided on claims seeking back pay. But he called the PAGA statute "a sleeping dog issue." Even if the plaintiffs don't take those claims to a verdict, Gil said they still provide extra leverage to the opposition, because of the substantial threat of penalties and discovery costs.

"It's a pretty significant issue in labor and employment law, no doubt about it. It's certainly an issue the California Supreme Court needs to grapple with," Gil said.