Nick Payzant, a member of the NFIB California Leadership Council and founder of Cerna Homecare in Irvine, has expressed concerns about the effectiveness of recent reforms to California’s Private Attorneys General Act (PAGA). In a guest editorial for the Southern California Newspaper Group, Payzant acknowledged that some changes have provided business owners with more chances to correct errors before facing penalties.
“These reforms have given business owners more opportunities to fix mistakes and demonstrate good-faith compliance before facing high-cost penalties,” said Payzant. “That progress deserves recognition, but the problem still remains, as more work needs to be done. Even after reforms were enacted in 2024, filings increased exponentially, and in 2025, PAGA filings hit a record high of 10,098.”
Payzant also highlighted pending legislation: “Important proposals, like Senate Bill 84, only have one year left to move forward. If passed, it would help curb additional frivolous lawsuits that target minor, technical violations, including those brought under the Americans with Disabilities Act.”
He noted that legal challenges for small businesses extend beyond PAGA. According to Citizens Against Lawsuit Abuse California, other issues include lawsuits related to ADA compliance, Proposition 65 warnings, class action abuse, and third-party litigation funding.
The National Federation of Independent Business (NFIB) California represents over 35,000 small business owners across the state and acts as an advocate for their interests through legislative engagement and resource provision (source). The organization works to protect small businesses from excessive regulations and taxes while promoting policies that support economic opportunity (source).
NFIB encourages members and other small business owners to share their experiences regarding legal challenges they face.
