PAGA Claims in California: How Workers Can File and What Penalties Employers Face

Employees in California can file PAGA claims for labor violations and recover civil penalties on behalf of the state. Penalties vary by infraction, and employers may reduce liability if violations are corrected within the allowed timeframe.

By Brad Nakase, Attorney

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Table of Contents

Introduction

1. Who is eligible to sue under PAGA?

2. Which labor infractions give rise to claims under the PAGA lawsuit?

3. How can employees bring a case under the Private Attorney General Act?

4. How much time do employees have to submit a PAGA claim?

5. How do PAGA fines get determined?

6. What is the purpose of SB-92 and AB-2288?

Introduction

A California statute known as the Private Attorney General Act, or PAGA, permits employees to file claims for labor violations against their current or former employers. As “private attorneys general,” the employees have the same legal authority to enforce civil penalties as a governmental department.

Here are four important things to be aware of:

Under PAGA, employees can bring a lawsuit on the California Attorney General’s behalf.
Penalties for labor infractions can range from some dollars to two hundred dollars per resentful employee, per period of pay, depending on the circumstances.
The Government of California receives 65% of these financial fines rather than the employees.
Employees can file a PAGA lawsuit within a year of the infraction.

1. Who is eligible to sue under PAGA?

“Aggrieved employees” of a corporation may file a PAGA suit. If a worker was directly harmed by one of the business’s labor infractions, they are considered aggrieved employees.

It should be noted that your contract of employment allows you to agree to arbitration in lieu of pursuing PAGA claims on your own.

It should be noted that some janitorial employees who are covered by a contract of collective bargaining and a labor organization that was in force before 1^st July 2018, are not eligible to file PAGA claims.

2. Which labor infractions give rise to claims under the PAGA lawsuit?

Three categories of labor infractions are listed by the Private Attorney General Act that may result in PAGA claims:

California Labor Code violations that are specifically mentioned in the PAGA legislation,
Infractions of California’s labor regulations, including those pertaining to safety and health,
A PAGA claim may be made by any staff member who has been harmed by one or more of these infractions.

3. How can employees bring a case under the Private Attorney General Act?

Unlike other wage & hour claims, the PAGA lawsuit filing process is distinct.

A PAGA claim is first submitted to the California Labor & Workforce Development Agency by irate employees. You have to make this submission online. The filing fee is $75, but if required, it could be waived. Additionally, it must be served by certified letter to the employer.

Certain information must be included in the PAGA claims filing that is submitted to the California Labor & Workforce Development Agency. A list of the employer’s infractions is insufficient. It must, at the very least, state:

The essential details of the incident,
The specific labor regulations in California that were broken, and
A list of the harmed workers.

Nevertheless, not all facts or infractions must be included in the very first PAGA lawsuit file.

This notifies the employer about the claim. Additionally, it allows the Agency to independently look into and pursue the allegation. The Agency must decide whether to accept the case within 65 days. The resentful employee has the option to bring an independent PAGA lawsuit if they so desire.

A PAGA claim proceeds as a representative litigation when it is filed. In contrast to a class action, this one does not require certification of the class. However, other workers who have been harmed by a labor violation are represented by the resentful employee who is bringing the PAGA claims.

Employers are given 33 days of the year to “fix” certain violations pertaining to:

Meal periods,
Overtime,
Rest breaks,
Minimum wage,
Expense reimbursements. and
Wage statements

Employers will not be subject to a civil penalty if they correct the infraction.

4. How much time do employees have to submit a PAGA claim?

One year from the latest claimed labor infraction is the law of limitations for submitting PAGA claims.

5. How do PAGA fines get determined?

Employees who prevail in a PAGA lawsuit are awarded civil fines. Nonetheless, the State of California receives the majority of the fines obtained in PAGA claims.

A hundred dollars civil penalty is imposed on each harmed employee each pay period for the employer’s first labor violation. However, there are certain exceptions:

Penalties for wage statement infractions that do not result in harm are limited to $25 per affected employee for each pay period.
Penalties for single, infrequent infractions are limited to $50 per affected employee for each pay period.
Penalties for infractions may be capped at fifteen percent of the maximum fine if employers acted “proactively compliant.”
Violations may be limited to thirty percent of the maximum fine if employers responded (“took every reasonable action”) within sixty days of getting a PAGA notice.

In the meanwhile, labor fines may reach $200 per worker, for each pay period, if either:

The employer’s actions that resulted in the violation were determined by the court to be oppressive, malicious, or dishonest; or
The company’s practice that resulted in the violation was deemed unlawful by the Labor & Workforce Development Agency or the appropriate court within five years before the infraction.

Recovering compensation is not the same as this. Unpaid wages are the main focus of an employee’s recovery in a standard wage & hour lawsuit. Workers are only entitled to civil fines pursuant to the Private Attorney General Act when they file a claim.

The party filing a PAGA complaint only gets a portion of the money, as is the case with many qui tam claims.

The State of California receives 65 percent of the fines collected in a Private Attorney General Act suit.
Thirty-five percent of the penalty is shared by the resentful employees who filed the claim.

The workers who were impacted by the labor infractions split this amount.

Successful PAGA cases also recover court expenses and attorneys’ fees along with these fines.

6. What is the purpose of SB-92 and AB-2288?

Governor Newsom of California signed two bills that improved the employer-friendliness of PAGA laws.

Employers who violated the law were subject to civil fines of $100 for each resentful employee every pay period before AB-2288. Many infractions are now subject to significantly lower caps, particularly if the employer made aggressive steps to address the issue.

Before SB-92, companies frequently did not have the opportunity to correct infractions before facing civil fines. Employers now have thirty-three days to correct infractions before facing civil penalties.

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PAGA Claims in California: How Workers Can File and What Penalties Employers Face

Introduction

1. Who is eligible to sue under PAGA?

2. Which labor infractions give rise to claims under the PAGA lawsuit?

3. How can employees bring a case under the Private Attorney General Act?

4. How much time do employees have to submit a PAGA claim?

5. How do PAGA fines get determined?

6. What is the purpose of SB-92 and AB-2288?

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