California’s Credit Unions is actively engaging in coalition advocacy to improve the business operating environment for credit unions.

As part of a broad, multi-industry coalition led by the California Chamber of Commerce, California’s Credit Unions signed onto a comment letter addressing proposed regulations under the Private Attorneys General Act (PAGA).

PAGA is a California law that allows employees (and their attorneys) to sue employers directly on behalf of the state for Labor Code violations, often resulting in costly litigation regardless of merit.

The California Labor and Workforce Development Agency (LWDA) recently issued proposed rules that will govern how PAGA claims are filed, processed, and resolved. These regulations have real consequences for any California employer — including credit unions.

The coalition letter supports reforms that would:

• Require attorneys who frequently file PAGA notices to certify their claims under penalty of perjury, creating real accountability for boilerplate, template-driven lawsuits.
• Establish clear mechanisms to identify and sanction “vexatious filers” — attorneys or firms that repeatedly file frivolous or legally deficient PAGA notices.
• Allow employers to seek dismissal of PAGA actions based on defective notices at the earliest stage of litigation.
• Ensure that settlements can be reached fully and finally, reducing the risk of serial litigation by the same firms on overlapping claims.

California’s Credit Unions recognizes that California’s business climate presents ongoing challenges. We are engaged across multiple fronts — in coalition with peer associations, employer groups, and advocacy organizations — to ensure that credit unions have a seat at the table wherever policy decisions affect how credit unions do business.

We will continue to keep you informed as this rulemaking moves forward. If you have questions, contact Lisa Quaranta, Vice President of Regulatory Advocacy at California’s Credit Unions.