California employers often ask what steps they can take to prevent employment litigation. While it’s impossible to completely avoid frivolous lawsuits, employers can focus on what they can control. By regularly reviewing a few key areas, employers can significantly reduce their liability. Here are five steps to get started (hint: the most important step is listed last):
1. Take Reasonable Steps to Comply with the Labor Code to Reduce PAGA Audits
With the new Private Attorneys General Act (PAGA) reform law, California employers can receive immediate relief. The reformed PAGA framework caps penalties for employers who take reasonable steps to comply with the Labor Code, potentially reducing penalties by as much as 85%. To establish compliance, employers should conduct periodic wage and hour audits to ensure adherence to meal and rest break obligations, establish compliant policies and handbook policies, train supervisors on Labor Code compliance, and take appropriate corrective action with supervisors to violate company policy. Also, quarterly audits by experienced employment law counsel can demonstrate good faith compliance with the Labor Code.
Also, next Thursday, January 30, 2025, my firm is offering a webinar: Navigating the Revised PAGA Law-Steps Employers Must Take to Reduce Penalties. We will be offering certificates to all who attend the entire presentation, and this is a start to establish that your organization is taking reasonable steps to understand and comply...
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