What happened?

On October 16, 2024, the California Labor & Workforce Development Agency (LWDA) released a new FAQ on the Private Attorneys General Act (PAGA), offering a comprehensive overview of this complex law and its recent amendments.

Quick Summary:

• The LWDA released a new FAQ, detailing the Private Attorneys General Act (PAGA) and its recent amendments.

What are the details?

Key Questions for employers that are provided in the FAQs guide:

• What is PAGA? PAGA allows employees to sue their employers on behalf of the state for labor code violations, seeking civil penalties that help enforce labor laws and encourage compliance. These penalties are additional to other remedies available through non-PAGA lawsuits.

• Who can be sued under PAGA? Private employers can be sued under PAGA, but government employers cannot.

• What can be recovered in a PAGA lawsuit? PAGA lawsuits seek civil penalties, which fund labor law enforcement and education. Penalties are split between the state and employees, with the split changing from 75/25 to 65/35 after June 19, 2024. Courts can also order employers to stop unlawful practices and reduce penalties if employers take reasonable steps to comply with the law.

• What is the cure process? Employers can correct certain violations during the notice period to avoid PAGA litigation and penalties. For notices filed on or after June 19, 2024, the types of curable violations have expanded. Cure proposals are confidential and must be submitted online. New processes for employer cures start October 1, 2024, including specific steps for wage statement violations and proposals for employers with fewer than 100 employees.

• What does an effective cure require? An effective cure involves correcting the violation, complying with the relevant statute, and making the aggrieved employee whole. This includes paying unpaid wages with interest, liquidated damages, and attorney’s fees, and providing compliant wage statements for past violations.

Business Considerations

• Employers should familiarize themselves with PAGA’s provisions, including who can bring a lawsuit, what violations are covered, and the penalties involved. This knowledge will help stay compliant and avoid potential lawsuits.
• Employers should establish robust compliance programs to ensure adherence to labor laws. Regularly review and update your policies and procedures to address areas like minimum wage, overtime, meal breaks, and wage statements.
• Employers should take advantage of the cure process to correct violations during the notice period. Submit cure proposals online and ensure they meet the requirements to avoid litigation and penalties.
• Employers should be ready to request an early evaluation conference to resolve disputes early in court if they have at least 100 employees. This can help mitigate the impact of potential lawsuits.

Source References

• CA PAGA FAQs
• CA PAGA Filing
• California Heads for PAGA Reform (VensureHR)

This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.