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Monday, May 4, 2026

The High Stakes and Risks of California's Private Attorneys General ... - California Employment Law Report

Enacted in 2004, California’s Private Attorneys General Act (PAGA) was designed by the California Legislature to offer financial incentives to private individuals to enforce state labor laws by recovering certain civil penalties. Aggrieved employees can seek recovery of civil penalties for Labor Code violations they suffered, in addition to penalties for all Labor Code violations suffered by other employees in a representative action, as long as the employee suffered by at least one violation. PAGA permits the aggrieved employees to collect civil penalties for Labor Code violations previously recoverable only by the Labor Commissioner. PAGA claims are representative actions, which are distinct from class actions.

1. Average PAGA settlement: $1.1 million

With penalties adding up to potentially huge amounts for small technical violations, employers are often times faced with choosing between the uncertainty of litigation or settling PAGA claims. A report, California Private Attorneys General Act of 2004, Outcomes and Recommendations by Baker & Welsh, LLC, states that the average settlement of a PAGA case is over $1 million. In addition, Los Angeles County and the rest of the Los Angeles Basis make up 46.4% of all PAGA case settlements. The Bay Area is second, with about 16% of PAGA case settlements based on location.

2. Potential penalties for employer with just 100 employees: $4 million

PAGA provides penalties on a per pay period basis for each aggrieved employee. The...



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