Business Coalition Urges Rejection of Senate Bill 310 Amid Concerns Over Litigation Floodgates

SACRAMENTO, CALIFORNIA – January 23, 2026 – A coalition of business organizations is calling on the California Legislature to reject Senate Bill 310, citing the bill’s potential to reopen floodgates to frivolous lawsuits against employers. This legislation threatens the reforms achieved just two years ago in the overhaul of the Private Attorneys General Act (PAGA).

The Urgency to Protect PAGA Reforms

The return of Senate Bill 310, which failed to advance in 2025, poses a significant risk to the landmark PAGA reforms that were designed to reduce abusive lawsuits regarding wage and hour issues. The coalition believes that if SB 310 moves forward, the positive outcomes for both employees and employers achieved in 2024 will be at serious risk.

A recent report by major employment law firms revealed promising results from the 2024 PAGA reforms. This included a decrease in frivolous lawsuits, faster settlements, and improved collaboration between businesses and their employees.

Concerns Raised by Business Leaders

Key figures from the business sector have voiced their concerns regarding the implications of Senate Bill 310:

• Jennifer Barrera, President & CEO of the California Chamber of Commerce, stated, “SB 310 undermines the PAGA deal in 2024. The recent amendments do not change this.” She emphasized that unscrupulous lawyers could exploit the proposed changes to pressure employers into higher settlements, ultimately impacting small businesses negatively.

• Brian Maas, President of the California New Car Dealers Association, pointedly remarked, “We urge the Senate to stand by that agreement,” referencing the substantial progress made with the PAGA reform.

• Dave Puglia, President & CEO of the Western Growers Association, explained, “The costs to businesses, and ultimately customers, from frivolous lawsuits are staggering. SB 310 would easily re-open those floodgates.”

Broad Coalition Opposes SB 310

Over 120 companies, including major associations such as the California Restaurant Association and the California Retailers Association, are urging legislators to reconsider the bill.

• Jot Condie, President & CEO of the California Restaurant Association, emphasized, “Simply put, SB 310 is bad for business. There were good reasons it didn’t move forward last year, and it shouldn’t move forward in 2026.”

• Rachel Michelin, President of the California Retailers Association, illustrated a sense of urgency: “Lawsuit abuse was rampant before the PAGA reform we achieved and now is not the time to go backwards.”

The business community believes that the current amendments to SB 310 would allow attorneys to sidestep state oversight and leverage threats of automatic statutory penalties, further complicating the legal landscape for employers across the state.

Conclusion

As the debate over Senate Bill 310 continues, the business coalition firmly stands united in its call to maintain the integrity of the reforms achieved in 2024. The potential ramifications of the bill could lead to a resurgence of frivolous lawsuits that undermine the collaborative improvements made in California’s business environment.

For additional updates on legislative actions affecting California businesses and advocacy efforts, visit the California Chamber of Commerce.

In standing against SB 310, the coalition hopes to ensure a balanced approach that continues to protect both employee rights and business interests.