On August 1, 2024, the California Supreme Court issued its decision in Turrieta v. Lyft (2024 S.O.S. 2599), altering the strategic landscape for employees and employers embroiled in Private Attorneys General Act (PAGA) litigation. The Court ruled 5-2 that PAGA plaintiffs do not have an automatic right to intervene in, object to settlements of, or move to vacate judgments in other PAGA cases with overlapping claims. The Court’s decision was partly motivated by concerns that intervention could be used to derail settlements in pursuit of higher attorney fees.
The decision creates a “race to settle” scenario where the first plaintiff to reach resolution could preclude other plaintiffs from pursuing actions with overlapping claims against the same employer. While the Court prohibited automatic intervention, it preserved judicial discretion to consider objections from non-parties to settlements. The Court also left open the question of whether the State itself could object to proposed settlements.
This ruling is likely to prompt strategic shifts in PAGA litigation, for employees and employers alike. We may see increased efforts to consolidate overlapping cases early in the process and more communication with the Labor and Workforce Development Agency (LWDA) during settlement negotiations. Employers may also find themselves in a stronger position during settlement negotiations, potentially able to leverage competing PAGA plaintiffs to secure more favorable terms. Conversely, this ruling may encourage clever plaintiffs’ attorneys to collaborate more closely to maintain their bargaining power.
As the legal community adapts to this new landscape, we can expect to see evolving strategies in PAGA cases, particularly those involving multiple plaintiffs or potential settlements. Turietta is the latest change in PAGA law, following the far-sweeping reforms enacted by Governor Gavin Newsome on July 1, 2024.
Nathanel Ghinghis is an associate attorney with the law firm of Dunn DeSantis Walt & Kendrick. Nathanel focuses his practice on civil litigation, with an emphasis on labor and employment, commercial and business disputes, and product regulatory compliance.
Dunn DeSantis Walt & Kendrick provides a broad spectrum of legal services to businesses of all sizes, from small, local start-ups and non-profits to large, national companies. DDWK’s real estate development and construction practice includes representing all segments of the development and construction industries on both private and public projects.
You can find additional information and resources related to helping business owners and their businesses on the DDWK website.
