The California Labor & Workforce Development Agency (LWDA) recently published Frequently Asked Questions (FAQ)  on the Private Attorneys General Act (PAGA), providing an overview of the complicated law and the recent amendments.

The FAQ covers PAGA basics and provides guidance to employers on the new procedures introduced by the recent amendments.

Covered Employers

The FAQ specifies only private employers are subject to PAGA lawsuits. This was also discussed in the California Supreme Court decision in Stone v. Alameda Health System.

PAGA Recovery

The FAQ reviews what is recoverable under PAGA. Under PAGA, a plaintiff seeks penalties for alleged labor code violations, with the amount depending on the type of violation. The penalties fund enforcement of labor laws and education for employers and employees. For notices filed before June 19, 2024, 75% of the penalties go to the State of California and 25% to the aggrieved employees. For notices filed on or after this date, the allocation changes to 65% for the state and 35% for employees.

Additionally, courts may order employers to cease unlawful practices.

If employers took reasonable steps to comply with the law before receiving a notice, penalties can be reduced to 15% or 30% if they comply within 60 days, with certain exceptions.

Cure Process

The FAQ addresses the cure processes for employers. The recent amendments allow employers to fix certain violations during the notice period, avoiding lawsuits and penalties. Starting June 19, 2024, the list of curable violations includes minimum wage, overtime, meal breaks, expense reimbursement, and wage statement requirements. Cure proposals, treated as confidential, must be submitted online via the PAGA Filing Portal.

Before October 1, 2024, employers were required notify employees and the LWDA within 33 days of a PAGA notice. From October 1, 2024, all employers can cure wage statement violations, while those with fewer than 100 workers can propose cures for other issues. The LWDA will review proposed cures and may hold conferences. If not resolved, employees can file PAGA lawsuits. Appeals can be made to the Superior Court.

Effective Cure

The FAQ details what is required under the statute for a cure, including correcting the alleged violation and making the aggrieved employee whole. The FAQ lists what must be included for unpaid wages and wage statement cures.

Explanation of Early Evaluation Conference

The FAQ also discusses the new early evaluation conference from the recent amendments. Employers with at least 100 employees can request this conference and a stay of court proceedings when served with a summons and complaint. Overseen by a neutral evaluator, this process aims to resolve disputes early in court, separate from the LWDA’s administrative cure process.

Though not detailed in the FAQ, employers with less than 100 employees can also make use of the stay and early evaluation conference, but must first submit to the LWDA for consideration of proposed cure plans and related information.

If you have questions about PAGA or related issues, please contact a Jackson Lewis attorney to discuss.  Jackson Lewis has seven offices in California to assist employers.

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Photo of Cary G. Palmer Cary G. Palmer

Cary G. Palmer is a principal in the Sacramento, California, office of Jackson Lewis P.C. He represents management in employment, labor and benefits law and related litigation. Cary has extensive class action experience. He also mediates class actions.

Cary practices before the state…

Cary G. Palmer is a principal in the Sacramento, California, office of Jackson Lewis P.C. He represents management in employment, labor and benefits law and related litigation. Cary has extensive class action experience. He also mediates class actions.

Cary practices before the state and federal courts in California, the United States Department of Labor, the United States Equal Opportunity Commission, the California Civil Rights Department, the California Division of Labor Standards Enforcement, and the California Workers’ Compensation Appeals Board. He also defends management in statewide and nationwide class action and collective action litigation. Cary also defends management in litigation involving wrongful termination, reductions in force, discrimination, harassment, breach of contract, wage and hour, benefits, and other labor and employment-related actions. He also conducts employee and management training seminars, and provides proactive employment advice and counsel.

Photo of Leonora M. Schloss Leonora M. Schloss

Lenny Schloss brings to bear her 30 + years of experience as a labor and employment attorney to provide employers with effective legal advice and business-oriented solutions to help them achieve their objectives in a cost-effective manner. Lenny works every day to deliver…

Lenny Schloss brings to bear her 30 + years of experience as a labor and employment attorney to provide employers with effective legal advice and business-oriented solutions to help them achieve their objectives in a cost-effective manner. Lenny works every day to deliver results that exceed her clients’ expectations.

Lenny’s legal experience extends beyond her 30 + years in practice. Her first exposure to the law—and a key motivating factor in her choosing law as a profession—was navigating legal documents for her family as a first-generation American with parents who fled from Eastern Europe during World War II. It was that experience that influenced her dedication to ensuring a practical approach to solving problems for clients and her proactive client service mindset on every matter.