Construction Employer’s CBA May Waive PAGA Claims

On September 19, 2018, Governor Brown signed Assembly Bill No. 1654. Effective January 1, 2019, AB 1654 modifies the Private Attorneys General Act of 2004 (“PAGA”) and exempts an employee in the construction industry from its coverage with respect to work performed under a valid collective bargaining agreement that contains several provisions specified in the law. AB 1654 permits the employer and union to agree in their CBA that only a private arbitrator will decide a construction industry employee’s alleged violations of the Labor Code that would otherwise have been redressable pursuant to PAGA. The exception expires on the date the CBA expires or on January 1, 2028, whichever is earlier.