Trial lawyers have turned California’s little-known Private Attorneys General Act (PAGA) into a corrupt, state-sponsored extortion machine under the guise of ‘enforcing state labor law.’ They file thousands of abusive lawsuits a year, often over minor technicalities. Small, family-owned and run businesses get hit hardest and settle just to stay afloat. This isn’t about protecting workers. It’s about enriching lawyers and imposing a hidden ‘stealth tax’ on business.
Steve Hilton’s plan to end the PAGA business extortion racket puts labor enforcement back in the hands of the state’s labor agency, cutting out trial lawyers who profit from abusive lawsuits. The state would review claims, investigate credible cases, and issue citations with common sense remedies to ensure fair and impartial enforcement without turning labor law into a cash grab.
How PAGA Became a Billion-Dollar Lawsuit Factory
PAGA, the Private Attorneys General Act was passed in 2004. It outsourced the enforcement of California labor law to private trial lawyers, incentivizing them to harass businesses and extort money from them. Worse still, the government makes money too by taking the largest share of awards against employers, or settlements, after the lawyers take their payment.
PAGA allows trial lawyers to sue any business for the most footling technical oversight, such as an incorrect date format on a pay stub. These lawyers have turned PAGA into a jackpot, with average settlements exceeding $1 million and over a third of that money going straight to attorneys. We now have the obscene spectacle of trial lawyers fishing for business on Instagram, parking trucks outside workplaces, wandering around business premises handing out cards to workers and encouraging them to terrorize their employer.
Small Businesses Under Attack
Small businesses, often without in-house counsel, are especially vulnerable. PAGA is legalized extortion, and small businesses, especially those without big legal teams, are easy targets. Many settle just to avoid going under. For small businesses, multiple settlements per year in the high tens of thousands are routine, adding an enormous financial burden to already hard-pressed business owners, as well as anxiety, stress and time wasted on legal bureaucracy and paperwork.
The Original Purpose vs. Current Reality
PAGA was originally passed because the California Labor Commissioner was understaffed and claimed to be unable to investigate labor complaints adequately. But that was two decades ago. Today, with modern case management systems and tools like artificial intelligence, the Labor Commissioner’s office could efficiently review and manage complaints even with limited staff. It’s time to take enforcement power back from trial lawyers and return it to neutral state officials equipped to handle it responsibly.
How PAGA Works Now vs. How Steve Hilton Would Improve It
Current Broken PAGA Process
1. Claim Initiation: Trial lawyer seeking a big payout sends a PAGA letter to the Labor Commissioner and the employer, initiating the process.
2. Labor Commissioner Review (65 Days): The Labor Commissioner has 65 days to review the letter and decide whether to investigate. In practice, 99% of letters are not even read.
3. Automatic Lawsuit Right: If the Labor Commissioner doesn’t respond in 65 days, the employee can file a lawsuit in court. The employee’s lawyer may represent all similarly situated employees, like a class action lawsuit.
4. Private Lawsuit Filed: Most cases proceed to civil court. Lawyers handle enforcement via lawsuits, with financial incentives to maximize penalties.
5. Settlement and Penalties: Settlements require court approval. Penalties are split: 65% to the state, 35% to employees—lawyers often take over a third of the employees’ share.
Steve Hilton’s Reformed PAGA Process
1. Claim Initiation: Employee (or their lawyers) sends a PAGA letter to the Labor Commissioner. The state initiates review, not profit motivated private lawyers.
2. Labor Commissioner Review (65 Days): The Labor Commissioner has 65 days to decide whether to take the case. Modern tools, including AI, will provide efficiency in reviewing claims.
3. Investigation Phase (120 Days): If the Commissioner opens an investigation, they have 120 days to review the case and gather facts.
4. State Issues Citation: If the investigation reveals a possible violation, the Labor Commissioner issues a citation—like a ticket—that outlines the violation and a required remedy.
5. Resolution and Compliance: If the employer complies with the remedy, the matter is closed. If not, the state—not trial lawyers — enforces penalties fairly and directly.
Steve Hilton’s Four-Point PAGA Reform Plan
As governor, Steve Hilton will overhaul California’s broken PAGA system and return enforcement to where it belongs—with the Labor Commissioner, not trial lawyers looking to cash in. His plan includes:
Appointing Pro-Reform Leadership
Appointing pro-reform leadership at the Labor and Workforce Development Agency. A new Secretary of Labor and State Labor Commissioner, committed to fairness, compliance, and timely resolution, will restore trust and functionality to California’s labor oversight.
Executive Action to Reform Enforcement
Executive action to reform PAGA enforcement. Hilton will direct the Labor Commissioner’s office to fully assert its authority to review and investigate claims using existing staff and resources. This will ensure the state, not profit-driven lawyers, decides which violations warrant action and how to resolve them.
Smart Technology Solutions
Make enforcement smarter and more efficient. Modern tools like artificial intelligence and improved case management systems will help the Labor Commissioner’s office identify abusive claims, prioritize credible cases, and accelerate investigations. These upgrades will lead to faster, fairer outcomes for both workers and employers.
Legislative Reform
Legislation to modernize PAGA. Hilton will work with lawmakers to replace the current lawsuit-first system with an administrative model that puts investigations and resolution in the hands of neutral public officials. Credible claims will result in citations and remedies instead of jackpot lawsuits.
The Real Impact on California Businesses
Small Business Survival at Stake
California’s PAGA system is devastating small businesses across the state:
- Average settlements exceed $1 million with lawyers taking over one-third
- Multiple settlements per year in the tens of thousands are routine for small businesses
- Legal costs and stress drain resources from business operations
- Time wasted on legal bureaucracy instead of serving customers
- Fear of bankruptcy forces quick settlements regardless of merit
Economic Consequences Statewide
The PAGA extortion racket damages California’s entire economy:
- Businesses relocate to states without predatory lawsuit systems
- Job creation slows as employers fear legal liability
- Innovation suffers as resources go to legal defense instead of growth
- Consumer prices rise to cover lawsuit costs
- California’s reputation as business-hostile continues to spread
Protecting Workers While Supporting Business
Real Worker Protection
Steve Hilton’s reform doesn’t abandon worker rights—it strengthens them by ensuring:
- Legitimate complaints get prompt investigation by trained professionals
- Real violations result in appropriate remedies and compliance
- Workers receive the full benefit of penalties, not just what’s left after lawyers take their cut
- Quick resolution instead of years-long court battles
Fair Business Treatment
Reformed PAGA enforcement will provide:
- Clear guidance on compliance requirements
- Proportional penalties that fit the violation
- Opportunity to correct minor technical issues without massive lawsuits
- Predictable process managed by neutral state officials
Frequently Asked Questions
Q: Won’t this weaken worker protections? A: No. Steve Hilton’s plan strengthens worker protection by ensuring professional investigators handle cases instead of profit-motivated lawyers seeking maximum settlements.
Q: How will the Labor Commissioner handle increased caseload? A: Modern AI tools and case management systems will dramatically improve efficiency. The state already receives 65% of current PAGA settlements, providing resources for proper staffing.
Q: What happens to current PAGA cases? A: Existing cases will continue under current law, but new reforms will prevent future abusive lawsuits while protecting legitimate worker rights.
Q: How quickly can these reforms be implemented? A: Executive action can begin immediately upon Steve Hilton taking office, with legislative reforms following in the first year.
The Choice Is Between Lawyer Enrichment vs. Worker Protection
California faces a clear choice between two approaches to labor enforcement:
Current System: Trial lawyers profit from abusive lawsuits while businesses suffer and workers get minimal benefit
Steve Hilton’s Reform: Professional state enforcement protects workers fairly while allowing businesses to thrive
Take Action and Support PAGA Reform
California’s workers deserve real protection, not a system that enriches lawyers at everyone else’s expense. Steve Hilton’s PAGA reform plan offers a balanced approach that protects workers while ending the extortion of California businesses.
Ready to end the PAGA extortion racket?
- Follow Steve Hilton’s campaign for business reform updates
- Share this plan with business owners and workers affected by PAGA abuse
- Volunteer to help restore fairness to California’s labor enforcement
PAGA was meant to ensure fair labor standards, not enrich attorneys. Under Steve Hilton’s leadership, California will take enforcement back from the trial lawyer lobby and build a system that protects workers, respects employers, and strengthens our economy.
Bottom Line: California’s PAGA system has become a corrupt extortion machine that enriches trial lawyers while burdening businesses and providing minimal benefit to workers. Steve Hilton will end this abuse by returning enforcement to professional state officials who can protect workers fairly without destroying businesses.
