The 2024 revisions to the California Private Attorneys General Act were widely considered a welcome change that would make the law clearer, compliance simpler, and resulting penalties more reasonable.
But more than a year later, filings for PAGA—which authorizes aggrieved employees to sue for civil penalties in labor cases on the state’s behalf—are higher than ever. And many large employers remain uncertain how to navigate this complex law.
The revised PAGA includes some changes that benefit employers of all sizes. PAGA plaintiffs no longer can bring claims for violations they’ve not personally suffered, and there’s now an expedited cure process when a wage statement dispute is the sole violation.
Amended PAGA also halves penalties for employers with weekly (as opposed to biweekly) pay periods, and places substantial caps on penalties when an employer takes all reasonable steps to comply with law.
Unfortunately, many other provisions make little sense for large employers.
The revised regulation isn’t retroactive and applies only to notices filed after June 19, 2024. While PAGA now allows employers to cure many more types of violations, curing means making “each aggrieved employee whole.” That means an employer must make all payments owed under the application code sections going back three years from the PAGA notice, pay 7% interest, compensate liquidated damages required by law, and provide reasonable attorneys’ fees and costs.
These onerous requirements, coupled with...
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