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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

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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Opinion

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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Health & Wellness

Conquering Hanger: Smart Strategies for Balanced Blood Sugar

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Stay Energized and Focused with These Proactive Tips for Managing Hunger and Mood

Wellness Tips By Sarah Goudie, Nutrition Expert & Guest Writer for IEBJ

We’ve all been there: mornings rushed, constant pivots throughout the day, and suddenly it’s 7 pm with no thought given to food. Looking back on those moments, we all know what we resort to when we’re hangry.

Irritable. Scatterbrained. Shaky. Weak. Reduced impulse control. Tanked.

It’s simply the connection between our stomach and brain, as blood sugar levels can affect the release of hormones like adrenaline and cortisol, the fight or flight and stress hormones.

So, let’s address this blood sugar regulation/hangry cycle by taking care of ourselves in a few different ways.

  1. Prioritize Protein and Fat Before Your Morning Coffee: Your first meal sets the tone for the day ahead. Starting with protein before your coffee or favorite pastry can help stabilize blood sugar levels and provide satisfaction and sustenance. A handy tip: prepare a batch of hard-boiled eggs or protein pancakes on your day off for convenient grab-and-go options before you head out. Trust me, cold protein pancakes make for a quick and nutritious bite on your way to work!
 (Try the recipe below!) 
  1. Opt for Balanced Meals: When you have a chance to eat, even if it’s not your ideal meal, prioritize finishing your protein first, followed by your veggies and fruits. If you’re including simple carbohydrates, save those for the end of your meal. This meal sequencing helps regulate blood sugar levels and mood.

  1. Plan Ahead—Even Days in Advance: Sometimes, waking up 15 minutes earlier isn’t enough to ensure a nourishing breakfast and packed lunch. However, planning earlier in the week can alleviate the morning rush before you start your day. I often create a menu tailored to my work week, carefully considering seasonal foods and my personal goals. While meal prepping is fantastic if you have the time and enjoy leftovers, simply having a plan and doing the shopping can empower you and reassure you that your kitchen is stocked and ready.

  1. Slow Down: The quality of the foods we eat is important (think locally sourced, sustainable, clean), but so is the timing of our meals, as well as our mood and our focus while eating. Be intentional about meal times—sit down, step away from your desk, TV, or phone, and fully immerse yourself in the experience of eating. Many times, we eat quickly without being mindful. If you must eat on the go, find a quiet spot, whether it’s a park bench or pulled over in your car. Take the time to see, smell, and taste your food.

  1. SNACK SMART: This last tip is bolded for good reason—it has been a lifesaver for me countless times. Pack snacks. Every day. ESPECIALLY WHEN TRAVELING. We never know what the day will bring, so we must be prepared when we can’t access a full meal. Some of my favorite go-to snacks include “That’s It” bars, “RX” bars, a handful of macadamia nuts, or Paleo Valley protein sticks…not to mention my favorite reusable water bottle (complete with a straw designed to fit perfectly in my car cup holder). Being armed with snacks containing essential nutrients (fat, carbs, protein, and fiber) will help you navigate those moments when you’re tempted to make a fast food run.


*On the topic of fast food: Stay tuned for next month’s article, where I’ll unveil my top picks for healthier alternatives on those unavoidable drive-thru days!

Leaning into these proactive steps can revolutionize your approach to mindful fuel for your body. Embracing protein-rich breakfasts, balanced meal strategies, proactive planning, mindful eating habits, and smart snacking choices nourishes your body. It cultivates a deeper connection with your food and overall well-being. You can take charge of your dietary journey, one thoughtful bite at a time, and savor the rewards of a healthier, more vibrant life.

Check out my favorite protein pancake recipe!

  • Servings: 6 small pancakes
  • 1 large banana
  • 2 large eggs
  • 1/2 tsp cinnamon
  • 1 tablespoon coconut oil for pan
  • 1 scoop of your preferred protein powder
  • 1. Preheat skillet
  • 2. Blend ingredients above
  • 3. Use the coconut oil to prep the pan
  • 4. Cook till golden brown
  • 5. Serve warm, and add some fun toppings! My go-to toppings are hemp seeds, fresh seasonal fruit, a scoop of almond butter, and a drizzle of honey.
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