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Labor and business reach deal on law that addresses workplace abuses

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Labor and business reach deal on law that addresses workplace abuses

A deal has been struck between business and labor groups that puts an end to a long battle over a unique California law that allows workers who believe they have been victims of wage theft or other workplace abuses to sue employers not only for themselves but also for other workers.

Some of the largest companies in the state had banded together to place a measure on the November ballot that sought to effectively repeal the law, known as the Private Attorneys General Act, or PAGA. But backroom negotiations this month with unions and Democrats who opposed the initiative have resulted in a compromise that takes the initiative off the November ballot.

Instead, the deal reforms PAGA in a way that both businesses and workers say resolves problems with the law.

Concessions to business groups in the deal mainly involve changes to the penalty structure, making it more difficult for lawyers to simply demand a payout from a company. If companies can show they are trying to correct a violation, by giving back pay to workers and agreeing to change the offending practices, their penalties will be low.

“This package provides meaningful reforms that ensure workers continue to have a strong vehicle to get labor claims resolved, while also limiting the frivolous litigation that has cost employers billions,” said Jennifer Barrera, president and chief executive of the California Chamber of Commerce, according to a Tuesday news release from Gov. Gavin Newsom’s office announcing the deal.

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Labor groups say the changes will help ensure that bad behavior by employers is halted, rather than simply awarding them a settlement and allowing a company to go back to problematic practices. The deal also allows workers to more quickly be paid back for wage theft and other violations.

“We want things fixed, changes that actually do help workers,” said Lorena Gonzalez, head of the California Labor Federation. “We are happy with the deal.”

The legislative deal would impose a time limit on lawsuits brought: Alleged violations must have occurred within the last year, and the workers bringing the claims must have personally experienced the alleged violations.

The deal also folds in labor-backed Assembly Bill 2288, introduced by Ash Kalra (D-San José), which aims to give PAGA more teeth by giving courts the power to order employers to correct violations.

Various labor organizations praised the deal in a news release, saying that it upholds core tenets of PAGA that aim to let workers hold abusive employers accountable for widespread wage theft, safety violations and misclassification of workers as independent contractors.

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“PAGA is one of workers’ strongest protections against wage theft that drains at least $2 billion from workers’ pocketbooks each year. Today’s agreement protects this landmark law’s fundamental strength: workers’ right to access justice through our courts,” Alexandra Suh, co-president of the California Coalition for Worker Power and executive director of Koreatown Immigrant Workers Alliance, said in a statement.

The measure, initially set to appear on the California ballot in November, had been the culmination of long-standing efforts by corporate and industry groups to undo the law.

Business groups had criticized PAGA for causing what they described as a proliferation of frivolous and costly lawsuits that hurt small businesses and nonprofits. According to one study, the mounting lawsuits have cost businesses $10 billion during the last decade.

Under the PAGA law, workers would end up getting less money after a long legal process than if they had filed complaints through state agencies, groups backing the measure had said.

The law has helped workers sue companies such as Walmart, Uber Technologies and Google for workplace violations.

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“There is near universal consensus that PAGA is broken and not working for workers or employers,” said Brian Maas, president of the California New Car Dealers Assn., according to a news release from businesses that sought to repeal PAGA. “We need sensible reforms to fix the broken system. We support this legislative reform and encourage lawmakers to swiftly pass the measure.”

Negotiations over PAGA came amid broader discussions around the 2024 ballot as well as budget conversations in Sacramento underway this month. The governor must sign a balanced state budget by June 30, and the deadline to put measures on the November ballot is June 27. Talks are ongoing over another business-backed ballot measure that would make it harder for the state to increase taxes.

Proposed changes to PAGA aim to encourage compliance with labor laws by capping penalties on employers that quickly take steps to fix bad practices. For employers that take steps to comply with the labor code before even receiving notice that they will be sued under PAGA, penalties are capped at 15% of the amount that would have otherwise been awarded. For employers that work to correct violations after receiving a PAGA notice, penalties are capped at 30%.

More of the penalty money would go to workers, with their allocated share increasing from 25% to 35%.

The reform would levy a new, higher penalty of $200 per pay period on employers that act “maliciously, fraudulently or oppressively” in violating labor laws.

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Changes also aim to protect smaller companies by creating a process through which they can correct violations through the state labor department, to reduce their litigation costs.

“Small businesses throughout the state have been targeted by frivolous PAGA lawsuits for decades, even forcing some restaurants to shut down,” Jot Condie, president and CEO of the California Restaurant Assn., said in a statement. The reform package will “reduce shakedown lawsuits against small businesses.”

The Legislature will consider the reform legislation agreed to under the deal as early as this week. If the compromise is approved and signed by the governor, the coalition of businesses backing the initiative, called the Fix PAGA coalition, will remove its measure from the ballot.

Labor groups had raised an alarm about the ballot initiative in recent months, arguing that PAGA is a crucial tool for workers, since California struggles to enforce basic labor laws.

Although California has some of the toughest labor laws in the country, a study released last month by a team of researchers from UC San Francisco and Harvard University found that workers routinely experience abuses over pay, work schedules and other issues.

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A recent audit of the California labor commissioner’s office found that claims of wage theft filed by California workers are routinely left in limbo for years by state investigators. The labor commissioner’s office would need to hire hundreds of additional staffers to effectively address a massive backlog.

Newsom’s office, as part of the deal, will pursue a budget-related bill to give the California Department of Industrial Relations the ability to expedite hiring in order to improve enforcement of wage theft claims.

Negotiations over the deal have lasted months and appeared to be going nowhere, but Newsom’s office, which was mediating the discussions, stepped in with a firmer hand this month. The deal came together over the last few weeks and was finalized on Monday, said a source familiar with the negotiations.

“Though we’ve successfully negotiated a dangerous measure off the November ballot — we can only hope that this deal encourages more employers to follow the law and pay their workers what they are owed. California’s worker advocate attorneys will continue to work vigilantly to ensure that they do,” said Kathryn Stebner, president of Consumer Attorneys of California.

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Labubu maker Pop Mart is opening U.S. headquarters in Culver City

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Labubu maker Pop Mart is opening U.S. headquarters in Culver City

Pop Mart, the Chinese toymaker known for its collectible Labubu dolls, reportedly plans to open a new office building in Culver City as it seeks to expand its North American presence.

The 22,000-square-foot office will serve as Pop Mart’s new U.S. headquarters, according to real estate data provider CoStar, which earlier reported the deal.

Pop Mart, founded in 2010 in Beijing, is credited with fueling the frenzy over “blind boxes” — small, collectible toys sold in packaging that keeps the exact figure inside a surprise until it is unsealed.

The toymaker, which is publicly traded on the Hong Kong Stock Exchange, has nearly 600 physical stores across 18 countries, according to its September 2025 half-year financial report.

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Much of its recent growth has concentrated in the U.S. In the first half of last year, the company opened 40 new stores, including 19 in the Americas. In Southern California, it now has stores in Westfield Century City, Glendale Galleria, and Westfield UTC Mall in La Jolla.

The office building Pop Mart is moving into, named “Slash,” features leaning glass windows and a distinguishable jagged design. The 1999 building was designed by the Los Angeles architect Eric Owen Moss.

Pop Mart’s decision to root itself in L.A.’s Westside comes amid Culver City’s transformation from a sleepy suburb known for being the home to Sony Pictures Studios — to an urban hub, driven, in part, by the Expo Line station that opened in 2012.

Ikea recently announced plans to open a 40,000-square-foot store in Culver City’s historic Helms Bakery complex — its first in L.A.’s Westside — later this spring.

Big tech has played an important role in Culver City’s recent evolution. Recent additions include Apple, which has opened a studio and has been building a larger office campus; Amazon, which in 2022 unveiled a massive virtual production stage, and Tiktok, which in 2020 opened a five-floor office featuring a content creation studio. Pinterest has a new office in Culver City as of last month, according to the company’s LinkedIn account.

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After Warner Bros. merger, changes are coming to the historic Paramount lot. Here’s what to expect

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After Warner Bros. merger, changes are coming to the historic Paramount lot. Here’s what to expect

With Paramount Skydance’s acquisition of Warner Bros. expected to saddle the combined company with $79 billion in debt, Paramount executives are looking to do away with redundant assets including real estate — and there is a lot of that.

Chief in the public’s imagination are their historic studios in Burbank and Hollywood, where legendary films and television show have been made for generations and continue to operate year-round.

“Both of these studios are in the core [30-mile zone,] the inner circle of where Hollywood talent wants to be,” entertainment property broker Nicole Mihalka of CBRE said. “It’s very prime real estate.”

When Sony and Apollo were bidding for Paramount in early 2024, their plan was to sell the Paramount property, but there is no indication that Paramount would part with its namesake lot.

For now, Paramount’s plan is to keep both studios operating with each studio releasing about 15 films a year, but the goal is to eventually consolidate most of the studio operations around the Warner Bros. lot in Burbank in order to to eliminate redundancies with the Paramount lot on Melrose Avenue, people close to Chief Executive David Ellison said.

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A view of the Warner Bros. Studios water tower Feb. 23, 2026, in Burbank.

(Eric Thayer / Los Angeles Times)

Paramount would not look to raze its celebrated studio lot — the oldest operating film studio in Los Angeles — because of various restrictions on historic buildings there. Paramount also has a relatively new post-production facility on site and will likely need to the studio space.

Instead, the plan would be to lease out space for film productions, including those from combined Paramount-HBO streaming operations. Ellison also is considering plans to develop other parts of the 65-acre site for possible retail use, as well as renting space for commercial offices.

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The studios’ combined property holdings are vast, and real estate data provider CoStar estimates they have about 12 million square feet of overlapping uses, including their studio campuses, offices and long-term leases in such film centers as Burbank, Hollywood and New York.

Century-old Paramount Pictures Studios is awash in Hollywood history — think Gloria Swanson as Norma Desmond desperately trying to enter its famous gate in “Sunset Boulevard,” and other classics such as “The Godfather,” “Titanic” and “Breakfast at Tiffany’s.”

The lot, however, is a congested warren of stages, offices, trailers and support facilities such as woodworking mills that date to the early 20th century. The layout is byzantine in part because Paramount bought the former rival RKO studio lot from Desilu Productions to create the lot known today.

Warner Bros. occupies 11 million square feet and owns 14 properties totaling 9.5 million square feet, largely in the United States and United Kingdom, CoStar said. About 3 million square feet of that commercial property is in the Los Angeles area.

The firm’s portfolio also includes the sprawling Warner Bros. Studios Leavesden complex in the U.K. and Turner Broadcasting System headquarters in Atlanta.

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Paramount Skydance occupies 8 million square feet and owns 14 properties totaling 2.1 million square feet, according to CoStar. In addition to its Hollywood campus, Paramount’s holdings include prominent buildings in New York such as the Ed Sullivan Theater and CBS Broadcast Center.

Warner Bros. operates a 3-million-square-foot lot in Burbank with more than 30 soundstages — along with space for building sets and backlot areas — where famous movies including “Casablanca” and television shows such as “Friends” were filmed. Paramount’s 1.2-million-square-foot Melrose campus anchors a broader network of owned and leased production space, CoStar said.

Paramount’s lot is already cleared for more development. More than a decade ago, Paramount secured city approval to add 1.4 million square feet to its headquarters and some adjacent properties owned by the company.

The redevelopment plan, valued at $700 million in 2016, underwent years of environmental review and public outreach with neighbors and local business owners.

The plan would allow for construction of up to 1.9 million square feet of new stage, production office, support, office, and retail uses, and the removal of up to 537,600 square feet of existing stage, production office, support, office, and retail uses, for a net increase of nearly 1.4 million square feet.

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The proposal preserves elements of the past by focusing future development on specific portions of the lot along Melrose and limited areas in the production core, architecture firm Rios said.

The Warner Bros. and Paramount lots “are two of the most prime pieces of real estate in the country,” Mihalka said. “These are legacy assets with a lot of potential to be [tourist] attractions in addition to working studios.”

Hollywood is still reeling from previous mergers, in addition to a sharp pullback in film and television production locally as filmmakers chase tax credits offered overseas and in other states, including New York and New Jersey.

Last year, lawmakers boosted the annual amount allocated to the state’s film and TV tax credit program and expanded the criteria for eligible projects in an attempt to lure production back to California. So far, more than 100 film and TV projects have been awarded tax credits under the revamped program.

The benefits have been slow to materialize, but Mihalka predicts that the tax credits and desirability of working close to home will lead to more studio use in the Los Angeles area, including at Warner Bros. and Paramount.

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“These are such prime locations that we’ll see show runners and talent push back on having shows located out of state and insist on being here,” she said. “I think you’re going to see more positive movement here.”

Times staff writer Meg James contributed to this report.

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How our AI bots are ignoring their programming and giving hackers superpowers

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How our AI bots are ignoring their programming and giving hackers superpowers

Welcome to the age of AI hacking, in which the right prompts make amateurs into master hackers.

A group of cybercriminals recently used off-the-shelf artificial intelligence chatbots to steal data on nearly 200 million taxpayers. The bots provided the code and ready-to-execute plans to bypass firewalls.

Although they were explicitly programmed to refuse to help hackers, the bots were duped into abetting the cybercrime.

According to a recent report from Israeli cybersecurity firm Gambit Security, hackers last month used Claude, the chatbot from Anthropic, to steal 150 gigabytes of data from Mexican government agencies.

Claude initially refused to cooperate with the hacking attempts and even denied requests to cover the hackers’ digital tracks, the experts who discovered the breach said. The group pummelled the bot with more than 1,000 prompts to bypass the safeguards and convince Claude they were allowed to test the system for vulnerabilities.

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AI companies have been trying to create unbreakable chains on their AI models to restrain them from helping do things such as generating child sexual content or aiding in sourcing and creating weapons. They hire entire teams to try to break their own chatbots before someone else does.

But in this case, hackers continuously prompted Claude in creative ways and were able to “jailbreak” the chatbot to assist them. When they encountered problems with Claude, the hackers used OpenAI’s ChatGPT for data analysis and to learn which credentials were required to move through the system undetected.

The group used AI to find and exploit vulnerabilities, bypass defences, create backdoors and analyze data along the way to gain control of the systems before they stole 195 million identities from nine Mexican government systems, including tax records, vehicle registration as well as birth and property details.

AI “doesn’t sleep,” Curtis Simpson, chief executive of Gambit Security, said in a blog post. “It collapses the cost of sophistication to near zero.”

“No amount of prevention investment would have made this attack impossible,” he said.

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Anthropic did not respond to a request for comment. It told Bloomberg that it had banned the accounts involved and disrupted their activity after an investigation.

OpenAI said it is aware of the attack campaign carried out using Anthropic’s models against the Mexican government agencies.

“We also identified other attempts by the adversary to use our models for activities that violate our usage policies; our models refused to comply with these attempts,” an OpenAI spokesperson said in a statement. “We have banned the accounts used by this adversary and value the outreach from Gambit Security.”

Instances of generative AI-assisted hacking are on the rise, and the threat of cyberattacks from bots acting on their own is no longer science fiction. With AI doing their bidding, novices can cause damage in moments, while experienced hackers can launch many more sophisticated attacks with much less effort.

Earlier this year, Amazon discovered that a low-skilled hacker used commercially available AI to breach 600 firewalls. Another took control of thousands of DJI robot vacuums with help from Claude, and was able to access live video feed, audio and floor plans of strangers.

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“The kinds of things we’re seeing today are only the early signs of the kinds of things that AIs will be able to do in a few years,” said Nikola Jurkovic, an expert working on reducing risks from advanced AI. “So we need to urgently prepare.”

Late last year, Anthropic warned that society has reached an “inflection point” in AI use in cybersecurity after disrupting what the company said was a Chinese state-sponsored espionage campaign that used Claude to infiltrate 30 global targets, including financial institutions and government agencies.

Generative AI also has been used to extort companies, create realistic online profiles by North Korean operatives to secure jobs in U.S. Fortune 500 companies, run romance scams and operate a network of Russian propaganda accounts.

Over the last few years, AI models have gone from being able to manage tasks lasting only a few seconds to today’s AI agents working autonomously for many hours. AI’s capability to complete long tasks is doubling every seven months.

“We just don’t actually know what is the upper limit of AI’s capability, because no one’s made benchmarks that are difficult enough so the AI can’t do them,” said Jurkovic, who works at METR, a nonprofit that measures AI system capabilities to cause catastrophic harm to society.

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So far, the most common use of AI for hacking has been social engineering. Large language models are used to write convincing emails to dupe people out of their money, causing an eight-fold increase in complaints from older Americans as they lost $4.9 billion in online fraud in 2025.

“The messages used to elicit a click from the target can now be generated on a per-user basis more efficiently and with fewer tell-tale signs of phishing,” such as grammatical and spelling errors, said Cliff Neuman, an associate professor of computer science at USC.

AI companies have been responding using AI to detect attacks, audit code and patch vulnerabilities.

“Ultimately, the big imbalance stems from the need of the good-actors to be secure all the time, and of the bad-actors to be right only once,” Neuman said.

The stakes around AI are rising as it infiltrates every aspect of the economy. Many are concerned that there is insufficient understanding of how to ensure it cannot be misused by bad actors or nudged to go rogue.

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Even those at the top of the industry have warned users about the potential misuse of AI.

Dario Amodei, the CEO of Anthropic, has long advocated that the AI systems being built are unpredictable and difficult to control. These AIs have shown behaviors as varied as deception and blackmail, to scheming and cheating by hacking software.

Still, major AI companies — OpenAI, Anthropic, xAI, and Google — signed contracts with the U.S. government to use their AIs in military operations.

This last week, the Pentagon directed federal agencies to phase out Claude after the company refused to back down on its demand that it wouldn’t allow its AI to be used for mass domestic surveillance and fully autonomous weapons.

“The AI systems of today are nowhere near reliable enough to make fully autonomous weapons,” Amodei told CBS News.

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