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LWDA Publishes PAGA Frequently Asked Questions
Oct 22, 2024

LWDA Publishes PAGA Frequently Asked Questions

Topics: PAGA

The California Labor & Workforce Development Agency (“LWDA”) recently published Frequently Asked Questions pertaining to the Private Attorneys General Act (“PAGA”) and the recent amendments that impact PAGA claims after June 19, 2024.

Previously, CDF provided guidance on the PAGA reforms introduced by Assembly Bill (AB) 2288 and Senate Bill (SB) 92.

The FAQs address one of the most significant reforms, the stricter standing requirement that a PAGA plaintiff represented by private counsel is limited to seeking PAGA penalties for alleged labor code violations the employee personally experienced. The stricter standing requirement does not apply to plaintiffs represented by non-profit legal organizations, who, like under prior law, may seek PAGA penalties based on alleged violations they did not personally experience, as long as the employee claims to have experienced at least one labor code violation.

The FAQs specify that for claims based on post-June 19, 2024 PAGA notices, 65 percent of recovered penalties go to the State and 35 percent go to the aggrieved employees (and Courts may award injunctive relief). And, as before, for PAGA notices pre-June 19, 2024, recovered penalties will continue to be distributed as 75 percent to the State and 25 percent to the aggrieved employees.

The FAQs also address limitations on recoverable penalties. With some exceptions, the maximum civil penalty will be capped at 15 percent of the maximum penalty if the employer took all reasonable steps to comply with the law prior to receiving the PAGA notice, or at 30 percent if the employer takes all reasonable steps to achieve compliance within 60 days of the PAGA notice. It remains to be seen how the courts will define the “all reasonable steps” standard.

The FAQs specify that employers may take new steps to cure certain violations. Within 33 days of the PAGA notice, the employer must give written notice to the aggrieved employee and to the LWDA that the alleged violations have been cured, with a description of the actions taken, including specific requirements for alleged wage statement violations and alleged violations involving unpaid wages. Effective October 1, 2024, employers with fewer than 100 employees may first, within 33 days of the PAGA notice, submit a cure proposal to the LWDA and then work with the LWDA to ensure the violations have been cured.

Also, employers of any size may request a stay of court proceedings and an early evaluation conference with a neutral evaluator, which is intended to facilitate early evaluation and resolution of the lawsuit. However, it is not clear how this will be carried out.

CDF will provide updates on further clarification, court decisions or additional guidance released by the LWDA. If you have any questions about this blog post, please contact your favorite CDF attorney.

About CDF

For over 25 years, CDF has distinguished itself as one of the top employment, labor and immigration firms in California, representing employers in single-plaintiff and class action lawsuits and advising employers on related legal compliance and risk avoidance. We cover the state, with five locations from Sacramento to San Diego.

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About the Editor in Chief

Sacramento Office Managing Partner and Chair of CDF’s Traditional Labor Law Practice Group. Mark has been practicing labor and employment law in California for thirty years. His practice has a special emphasis on the representation of California employers in union-management relations and handling federal and state court litigation and administrative matters triggered by all types of employment-related disputes. He is also adept at providing creative and practical legal advice to help minimize the risks inherent in employing workers in California. He recently named “Sacramento Lawyer of the Year” in Employment Law-Management for 2021 by Best Lawyers®.
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