Protecting your rights as an employee can sound like a daunting task, but California residents have protections in place to stop employers from violating labor laws and taking advantage of their hard work. One of these protections is the California Private Attorneys General Act (PAGA).

Understanding how to navigate the legal processes of filing a PAGA claim can be challenging and overwhelming, which is why it’s wise to seek counsel from a trustworthy California employment lawyer. That said, it’s still important to arm yourself with as much knowledge as possible about your rights.

What Is PAGA?

Enacted in 2004, the California Private Attorneys General Act (PAGA) exists as a means for legal recourse in the case that an employer violates any state labor laws. It essentially allows employees to file against their employer to recover civil penalties in response to violations of California labor laws.

Before PAGA was established, the state could not pursue every claim regarding labor code violations. An employee’s only course of action was to go through one-sided arbitration with the employer or file a claim through the state—which, in many cases, were dismissed due to lack of state resources.

PAGA provided a new avenue for employees to take when pursuing legal recourse for a labor law violation, allowing them to seek civil damages with the help of a private attorney or legal advocate. This was important due to the large number of employment violations that occur yearly in California; in fact, 4,404 EEOC charges were filed in 2022.

Everything to Know About PAGA Claims in California

When you go to file a PAGA claim, you must first ensure you meet the state requirements outlined in California Labor Code Sections 2698 through 2699.5. Filing PAGA claims can be a powerful way for employees to hold employers accountable for labor law violations, such as unpaid wages or unsafe working conditions. Once you file, it’s recorded through a state-managed PAGA Filing Portal on the Labor and Workforce Development Agency (LWDA) website.

Once a copy is sent to the defendant, they must file their response online and send a copy back to the employee who made the claim. At this point, LWDA reviews the notice and decides whether or not to pursue the case. If they decide not to pursue any action, you’re allowed to then file a PAGA case in civil court.

It’s important to note that submitting a claim through the PAGA Filing Portal does not mean you have officially served a defendant for your case. This filing is simply one step in the process of seeking legal recourse for labor law violations in California.

Newest Updates Regarding PAGA in California as Summer 2024

On July 1, 2024, California Governor Gavin Newsom signed into law two PAGA reform bills, AB 2288 and SB 92, effectively presenting employers with opportunities to reduce or even eliminate PAGA penalties.

Before the introduction of these bills, California courts allowed a fairly broad interpretation of the law regarding PAGA claims, allowing plaintiffs to pursue action even if they personally did not experience a Labor Code violation. For example, an employee could file a PAGA claim to seek compensation for their coworkers. With the new PAGA laws, plaintiffs must have a personal experience with the alleged violations to be able to file a claim.

Under New PAGA, employers have more incentive to comply with labor laws in the form of penalty caps for those who move quickly to fix policies and practices. Moreover, the bills create higher penalties for employers who violate labor laws. Employees also get to enjoy more penalty money as the reforms have increased the amount allocated to the plaintiffs from 25 percent to 35 percent.

The new PAGA reform bills also:

• Expand Labor Code sections that can be cured to reduce the need for legal action
• Protect small employers with a more cohesive right to due process, reducing litigation and related costs
• Strengthen enforcement from the Department of Industrial Relations (DIR) to expedite hiring and ensure timely handling of employee claims

New PAGA also codifies the California Supreme Court’s ruling in the case, Estrada v. Royalty Carpet Mills, Inc., which authorizes courts to limit evidence that is presented in trial for a PAGA claim and to limit the scope of a claim to ensure it can be tried fairly and effectively. Ultimately, the passing of these bills stands to strengthen worker protections and encourage employer compliance.

FAQs About California Private Attorneys General Act (PAGA) Law

What Is the New PAGA Law in California?

Under the new PAGA reform bills signed into law by Governor Newsom, California has stricter standing requirements, a revised penalty structure, streamlined litigation practices, improved measures for injunctive relief, and stronger state enforcement. The two bills essentially strengthen protections for workers with better court processes and encourage compliance from employers with incentives.

What Is the 75% of PAGA in California?

Under the original PAGA regulations, 75 percent of all recovered penalties from a claim went to the state, and the remaining 25 percent was awarded to the plaintiffs who filed the claim. Under New PAGA, those limits have shifted in favor of the employees filing the claim, with plaintiffs receiving 35 percent of the recovered penalties and the state getting the remaining 65 percent.

Do I Have to Pay to File a PAGA Claim?

Yes, you must pay a fee of $75 to file a new PAGA claim, which is due at the time of submission. Depending on your financial situation and if you meet all requirements, you may be able to avoid this fee by completing a Confidential Request to Waive Court Fees (Judicial Council Court Form FW-001).

What Are the Most Common PAGA Claims in California?

In the state of California, the most common PAGA claims tend to involve wage and hour violations. These types of claims typically involve failure to pay minimum wage, failure to provide accurate wage statements and payroll information, issues with breaks, unpaid wages and overtime, California Equal Pay Act (EPA) violations, and more.

Reach Out to a California PAGA Lawyer to Ensure Your Rights Are Protected

Thanks to PAGA, you have the right to protect yourself and seek compensation if you believe your employer has violated any labor laws. If you’re ready to explore your options, our skilled team at Jimenez Loayza, APC, is here to help. Contact our office to set up a consultation.