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California Leads in Class Action Lawsuits

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If you own or operate a business in California you most likely already know we have one of the highest workers compensations rates in the nation, highest tax rates, health insurance rates, and recently named number one for the most litigious state. At a certain point you would think our legislators would be embarrassed by such numbers.
Recently I saw an article published in Law 360 and it pointed out that California accounts for 12% of the total US population and more than 50% of all class actions in the US. There are more than 3,200 new federal cases filed a year in California with even more class actions filed in State Court. I would say California shattered the Class Action Lawsuit ranking and has another number one in the nation trophy to mount on their wall.
With the court system already being too jammed up, this opens the door for more cases to be settled in mediation. The Private Attorney General Act (PAGA) appears they have about 98% mediation rate as most never go to court due to the expense.
PAGA is known as the sue your boss law and has been gaining more and more momentum year after year as the trial attorneys are realizing huge payouts for themselves while business owners, their employees, and the state are helpless in mediation and also become victims to this cruel law. PAGA was written into law in 2004 to protect employees for the underground economy so bad employers would not take advantage of them. The state at the time had a deficit and felt it was a good idea to allow trial attorneys to enforce labor law violators. ‘Ovem lupo commitere’ , Latin for (‘To set a wolf to guard sheep.’)
More than 35,000 PAGA Lawsuits have been filed since 2004 and the cases are shocking to comprehend based on the so called labor violations. If you have a flexible schedule and decide to eat your lunch 1 second past 5 hours, that is a violation. If you give an employee a gift card or bonus for a job well done, that is a violation if not calculated properly, off by a penny or two, it could coat you millions.
What is really taking place is trial attorneys are seeking out terminated employees and offering them money they are owed from their previous employer. This ex-employee can represent all of their fellow employees in a class action lawsuit. With the PAGA provision it makes it easy to send a notice to the employer, investigate, while looking for any violation, and then file suit against the employer.
Here is an example of how skewed this law is. If the employer shorted the employee $ 28.61 on alleged labor law violations civil penalties and personal damages would be $69,508.61. That is 2,430 times the alleged actual damages and I bet you would get a better rate form a loan shark. If the employer has 30 employees the exposure is over $ 2,000,000 and actual damages would be only $ 858.30 to the aggrieved employees. So the trial attorney goes to mediation with the threat of more than $ 2,000,000 and tells the employer you need to settle this as legal expenses to fight could be another million. The trial attorneys know based on their deal with the state they will get 100% of their fees paid, as it comes right off the top of the settlement, usually a third of the total. The balance is then negotiated and what is supposed to happen rarely does, meaning the state takes 75% California Leads in Class Action Lawsuits of the balance and the employees get the remaining 25%. When the balance is settled everything becomes a shroud of secrecy and all of the employers do not want to talk about this as they are afraid they will get hit again.
The state is so overwhelmed with PAGA cases they can’t keep track, and the disgruntled employee who gets a check for $ 15.00 is told by the attorney who is being paid to protect them that you were only owed $ 28.61, so you did alright. The employer thinks after they settled for $ 750,000 that it was way better than 2 million. The trial attorney gets $ 250,000 and tells all of their colleagues how much they are helping the employees who have been taken advantage of.
That is the reality of PAGA and if anyone tells you different they are probably a trial attorney. California is being a leader in too many categories and Class action Lawsuits is nothing to be proud of. Furthermore we are the only state with such a law as PAGA and it is only allowing trial attorneys to steal from not only businesses, they are stealing form non- profits as well. Plaintiff Magazine has an article on settling class action lawsuits and how to divvy up the money on PAGA to the LWDA, “Most attorneys are allocating only a small amount to PAGA claims in their settlements”. Recently one attorney stated in an article,” PAGA is not for the employees.”
Our legislators need to focus on business and the negative effects of passing too many complex laws. Alan Dershowitz is quoted, “The defendant wants to hide the truth because he’s generally guilty. The defense attorneys job is to make sure the jury does not arrive at that that truth.” The PAGA Trial Lawyers know they are guilty of taking advantage of a broken law and it is their job to keep you way from that truth.

The Inland Empire Business Journal (IEBJ) is the official business news publication of Southern California’s Inland Empire region - covering San Bernardino & Riverside Counties.

Opinion

KTGY Announces Unanimous Approval of Community-Serving Shopping Center in North Redlands, California

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KTGY’s design transforms an underutilized site into a neighborhood anchor and showcases Regency Centers’ commitment to the growing residential community


KTGY, an award-winning design firm focused on architecture, interior design, branded environments and urban design, announces that The Marketplace, a Whole Foods-anchored retail development designed for Regency Centers, received unanimous approval from the Redlands City Council on Feb. 17, 2026, clearing the way for the development to move forward to building permits and construction. Planned on an 8.18-acre vacant site at the northeast corner of Lugonia Avenue and Tennessee Street, the center sits in the heart of one of North Redlands’ fastest-growing residential areas.

The Marketplace is planned as a 71,400-square-foot neighborhood retail center anchored by Whole Foods and supported by four shop buildings and a dedicated drive-through pad. Designed to LEED Silver standards, the development reflects Regency Centers’ approach to placemaking, emphasizing retail environments that are authentic to their neighborhoods and foster long-term community connection. KTGY’s design reinforces and complements this vision through context-responsive architecture and a site plan shaped around community needs. The development transforms a long-underutilized site into a neighborhood anchor positioned to serve existing residents and new housing planned to the north and east.

“Working with KTGY and Whole Foods Market on The Marketplace has been a genuinely rewarding process,” said Ray Kayacan, vice president of investments at Regency Centers. “Redlands is a community that’s growing fast, and we’ve been intentional about making sure this development grows with it. Getting unanimous approval from the City Council speaks to the alignment we built with the city early on, and I think it reflects how well the full team executed against a shared vision.”

KTGY’s design team approached the site with the task of balancing client goals, tenant requirements and the needs of a future community while maximizing retail density and flexibility. The site’s proximity to the 210 freeway and its high parking requirements demanded a precise and efficient layout. KTGY allocated the required parking and EV stalls, utilized compact stall allowances and directed truck circulation around the site perimeter. The result is a finely tuned example of suburban retail that serves nearby neighborhoods, attracts customers off the freeway and creates a strong leasing environment for tenants.

The Marketplace is anchored by a 36,000-square-foot Whole Foods and organized around four retail buildings that can be flexibly divided into as many as 18 storefronts. A fifth pad building is planned for a drive-through use with its own dedicated circulation. Early concepts explored a more industrial character, but to secure the grocery anchor, KTGY adapted the development’s aesthetics to align with Whole Foods’ contemporary brand requirements.

The final design features simple, contemporary building forms emphasized by brick columns and tower elements, with a connective brick treatment carried across the center. Roofline and material variations add visual interest, while industrial accents, including gooseneck lamps and standing seam metal awnings, reference the area’s historic context. The architecture incorporates cementitious siding, stone treatments at key corners and parapet-screened rooftop equipment, creating an earthy, warm palette that responds to the surrounding neighborhood.

“Redlands has a real sense of place, and that shaped how we thought about this project from the start,” said Kayacan. “With one major housing development underway and another planned nearby, this site had an obvious gap to fill. Residents are going to have a Whole Foods, flexible retail that can support a range of needs, and a place to gather.”

KTGY also shifted back-of-house functions and truck circulation away from the main parking field, raised the sidewalk and added a landscaped berm to buffer pedestrians from drive-through and freeway activity. A lighter entrance structure at the Whole Foods façade breaks up the flat roofline and creates space for outdoor seating, and the development is rounded out by landscaped buffers and a shaded corner plaza where neighbors can gather.

Buildings are arranged around the perimeter with parking in the center, creating a clear and efficient circulation pattern. The site includes five access points: two primary driveways from Lugonia Avenue and Tennessee Street, secondary entries from both streets and a connection to the Tennessee Village development to the north. The drive-through pad includes its own pocket of parking to support tenant operations.

Two major housing developments — Lugonia Village, with 541 homes, and Tennessee Village, with 460 apartments and commercial space — were approved nearby in 2024, reinforcing the need for neighborhood-serving retail in this corridor.

“Our team approached this site with a focus on maximizing retail density and creating flexible space that can support a range of tenants while meeting the needs of the city, Regency Centers and both existing and future residents,” said Brandon Wernli, associate principal at KTGY. “Balancing a tight site, high parking requirements and a late-stage design shift to meet Whole Foods’ brand standards required precision. The result is a contemporary retail environment that reflects Regency Centers’ commitment to creating neighborhood-serving places that connect with surrounding communities.”

“This development fills a meaningful gap in the built environment,” Wernli said. “With new housing planned nearby, The Marketplace will serve as a neighborhood anchor and a convenient place to shop, dine and gather. It’s a strong example of how thoughtful design can elevate everyday community experiences.”

Construction is expected to begin in late 2026, with completion anticipated in 2028.

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Ontario International Airport Welcomes Avelo Airlines with New Nonstop Service to Sonoma County

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Expansion Connects Southern California Travelers to Northern California’s Premier Wine Destination

Ontario International Airport (ONT) continues its impressive growth trajectory with the recent announcement from Avelo Airlines about their exclusive nonstop service to Sonoma County and Northern California’s renowned wine country. Starting October 10, the service will operate twice weekly on Thursdays and Sundays, connecting travelers directly to the Charles M. Schulz Sonoma County Airport (STS).

Streamlined Travel Experience

Passengers choosing Ontario International Airport are set to benefit immensely, not just from the expanded destination choices but also from the significant time savings associated with flying out of ONT. Known for its convenience and efficiency, ONT offers a more relaxed and hassle-free travel experience compared to larger, more congested airports. The smaller scale and thoughtful layout of ONT allow passengers to navigate check-ins, security, and boarding processes much more quickly, reducing the stress often associated with air travel.

Local Impact and Convenience

“Atif Elkadi, Chief Executive Officer of the Ontario International Airport Authority, highlighted the benefits of the new service, stating, “We are thrilled to add Avelo Airlines to our family of air carriers as we continue to provide exciting new destinations and travel options for the millions of Southern Californians who have made ONT their airport of choice.”

ONT’s strategic location and accessibility play a crucial role in its popularity. Situated in the heart of Southern California’s Inland Empire, the airport is conveniently reachable for residents from San Bernardino to Riverside and the surrounding suburbs. The airport’s proximity to major freeways reduces travel time to the airport itself, which is a significant advantage for local residents and businesses.

Enhanced Access to Northern California

Andrew Levy, Founder and CEO of Avelo Airlines, expressed enthusiasm about the new route, saying, “We are thrilled to announce our new nonstop service from Ontario to the Bay Area/Sonoma County, offering travelers a convenient, reliable, and affordable way to one of the most beautiful and vibrant regions in Northern California.”

Jon Stout, STS Airport Manager, also noted the mutual benefits of the new connection, “It’s fantastic to see Avelo connect Sonoma County with Ontario. This new route will bring a new level of convenience for our local residents and our neighbors in the Inland Empire.”

ONT’s continued expansion and the addition of new routes like the one to Sonoma County reflect its role as a pivotal hub in the region. With the airport on track to exceed 7 million passengers this year and recent records showing more than 650,000 passengers in June alone, ONT is setting new benchmarks in serving the community.

A Gateway to Growth

With world-class facilities and a commitment to excellent customer service, Ontario International Airport is rapidly becoming the gateway of choice for travelers seeking both domestic and international connections. Elkadi proudly asserts, “With our world-class facilities, great amenities, and unparalleled customer experiences, we are proud to connect the world to one of the most dynamic population and economic centers in the country.”

As ONT continues to expand its services and streamline travel experiences, it solidifies its position not just as a transport hub but as a significant contributor to the economic vitality of the Inland Empire.

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Surge in Unemployment Among California Youth Linked to Minimum Wage Hikes

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“We have to stop touting the minimum wage as a completely harmless policy, or as some kind of remedy for poverty and income inequality… it is neither.” 

In the past 18 months, California’s unemployment rate has jumped to the highest in the nation and a new analysis by Beacon Economics suggests that this peculiar increase could be a direct result of the state’s recent minimum wage hikes. Most concerning, according to the report, is that the current unemployment effect is specifically harming some of California’s most vulnerable residents—the state’s youth.

The new report highlights the fact that 90% of newly unemployed Californians over the past year and a half are under the age of 35 with the hardest hit group being teenagers. “This loss of youth work opportunity carries with it real long-run harm,” said Christopher Thornberg, Founding Partner of Beacon Economics and co-author of the new analysis. “It not only denies younger workers a critical source of income it deprives them of work experience that has been empirically shown to improve their chances of long-run success.” 

While the recent rise in unemployment in California has occurred in tandem with the state’s minimum wage hikes, the relationship likely extends beyond mere correlation. According to the analysis, the jump in unemployment is incongruous with other measures of the California economy, which have continued to expand at a respectable rate. In fact, both output and household income in the state are robust and growing either faster than or similar to the nation overall. Yet, the unemployment rate in the United States as a whole has barely budged in the past 24 months.

And there is yet another anomaly: throughout the recent rise in unemployment, there has been no corresponding increase in unemployment insurance claims. If laid off tech and entertainment industry workers were driving California’s higher unemployment rate, it would almost certainly be reflected, at least to some degree, in UI claims, according to the analysis.

“For far too long, researchers and advocates alike have held up the minimum wage as a harmless and effective policy remedy for poverty and income inequality, but it is neither of those things,” said Thornberg. “Evidence has shown us that minimum wages don’t do much to address the ills they are intended to correct, but carry a substantial cost, particularly for our state’s future workers.”

Although well intentioned, Thornberg, and co-author Niree Kodaverdian, argue that higher minimum wages cause prices to increase, which end up reducing real incomes for lower-skilled workers. Available data and past empirical studies show that wage floors do very little to divert income from higher income workers to lower income ones, which is how minimum wage laws are typically characterized by proponents.

The specific effect on youth is caused because as labor costs go up relative to other inputs, employers who might have used lower-skilled, entry level workers, such as teenagers, move towards hiring older, more experienced workers, according to the analysis. The idea is that if an employer is legally obligated to pay a higher wage, they will naturally hire more skilled and productive workers to offset higher labor costs. Since those under age 25 make up nearly half of minimum wage workers, this restructuring disproportionally affects the state’s youth.

The report firmly acknowledges the need for policies to help alleviate the strain on lower income households in pricey California but argues that this particular policy remedy doesn’t work as intended, and when pushed too far, can inflict real harm on some of the state’s most vulnerable residents. Better policy options, according to the authors, include the Earned Income Tax Credit, early childhood education, and increased training for lower-skilled adults.

The full analysis can be found here.

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