The recent changes to California’s wage and hour laws have significant implications for employers operating within the state. While the reforms are aimed at providing clearer guidelines for employers, there are still complex issues that HR professionals and employment lawyers must address. Key updates that affect your organization and what you can do to stay compliant are provided below.
For two decades, PAGA has been a vehicle for plaintiffs acting as a “Private Attorney General” to collect penalties for Labor Code violations previously only recoverable by the state. Before the recent reform, PAGA lawsuits often resulted in compounded penalties for effectively the same infraction. For example, an employer might owe an employee $15 for a missed meal break, but the employee could claim additional PAGA penalties for the associated regular rate, wage statement, and waiting time violations. Thus, PAGA claims added substantially to the already-high stakes of wage and hour class actions.
PAGA reform has clarified and reduced some of these penalties. Key highlights include:
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