Category Archives: Bankruptcy

PAGA Debt Not Dischargeable in Bankruptcy

In re Patacsil, 2023 WL 3964908 (Bankr. E.D. Cal. June 9, 2023) The Private Attorneys General Act (PAGA) permits aggrieved employees to file representative action to recover civil penalties for Labor Code violations. The law allocates 75% of any recovery to the Labor and Workforce Development Agency (LWDA) for “enforcement of labor laws” and “education … Continue Reading

Distributors Not Liable For Unpaid Wages Of Agricultural Workers

By Tony Oncidi on July 18, 2023 Posted in Bankruptcy, California Labor Code, California Labor Code Section 2810, Independent Contractors

Morales-Garcia v. Better Produce, Inc., 70 F.4th 532 (9th Cir. 2023) Agricultural laborers who picked strawberries for several growers sued the growers’ distributors, Better Market Produce and Red Blossom Sales, alleging that the distributors were liable for unpaid wages after the growers went bankrupt. Under Cal. Lab. Code § 2810.3, a company that outsources work … Continue Reading

Don’t Expect to Discharge That PAGA Debt in Bankruptcy

By Jonathan Slowik on June 22, 2023 Posted in Bankruptcy, California Labor & Employment Law, California Labor Code, PAGA, Wage and Hour

As we have written here on multiple occasions, the Private Attorneys General Act (PAGA) disadvantages employers in several ways. Despite permitting recovery similar to what might be obtained in a class action, class certification rules do not apply and it is an open question whether courts can even limit an unmanageable claim before trial. Plaintiffs … Continue Reading

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