California employers have long sought relief from relentless and costly claims under the state’s Private Attorneys General Act of 2004. PAGA allows an “aggrieved” employee to bring a civil action themselves or on behalf of other current or former employees to recover penalties for a violation of the California Labor Code.
Employers dread receiving a PAGA notice filled with alleged boilerplate labor code violations and often staggering penalty claims. Reforms enacted in 2024 limit an employee’s claim to violations that the employee personally experienced and provide enhanced cure rights, which allow employers to address certain Labor Code violations and avoid or reduce financial penalties by correcting the issue and making affected employees whole.
Still, PAGA filings are increasing, suggesting that additional procedural reforms alone may not be enough to slow the pace of PAGA litigation. To address this, the California Labor Workforce and Development Agency proposed regulations in February that it claims offer guidance and procedures.
The proposed changes, and the comments submitted to the LWDA in response, partly reflect employers’ growing frustration over PAGA’s impact and the high volume of filings generated by a relatively small group of attorneys.
It has only been a few months since the proposal, but the question remains: Would these regulations stem the PAGA tide?
Critically for employers, the proposed regulations target “high frequency” and “...
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