Hi Melina -
Yes, sorry, the timezone dropdown menu always shows the non-daylight savings offset. But as long as you choose your correct timezone based on the name (Pacific Timezone), then your dates should all work correct (daylight savings is accounted for when setting dates / times for your tasks).
You can verify things are set correctly by setting a date/time for a task in GQueues and going to your Google Calendar to confirm it shows the same date/time there.
GQueues uses the reminder system built into Google Calendar to send all notifications. Consequently, a person must have a GQueues account with calendar integration activated in order to receive reminder notifications. If you assign a task to someone without a GQueues account, and they have not activated calendar integration, then they will NOT receive reminders for the tasks. This functionality has not changed, so I'm not sure how your assignees were receiving notifications in the past.
-Cameron