“No one is more hated than he who speaks the truth.” Plato
We lawyers, if worth our salt, are in the truth business. In the game this firm plays, also known as California employment litigation, this is our daily task: to educate and bring management-side clients to grips with the largely no-win task of fighting their way through often inflated or sometimes fully imaginary accusations. See, Trust Me, I’m A Lawyer, Mass Employment Litigation is No Fun (August 30, 2024)
There is perhaps nothing more frustrating for an employer than to face a court challenge under the Private Attorneys General Act (PAGA) claiming a kitchen sink collection of Labor Code violations. Perhaps rightfully proud of years of well-intended workplace practices, management can nevertheless find themselves being held up for civil suit ransom over technical violations that pose millions in penalties.
“New class action and California Private Attorneys General Act (PAGA) filings have grown exponentially in recent years and reached record numbers in 2023. This trend is raising concerns for California employers as the state courts have expanded liability risks for more claims and further restricted the applicability of arbitration agreements to PAGA claims.” The Data Is In—California Class Action and PAGA Filings to Hit New Highs (Ogletree Deakins, Jan. 12, 2024)
Of course, an employer’s best defense is perfect timekeeping, perfect pay statements, and perfect everything else in compliance with California’s extensive, stringent and regularly expanding Labor Code requirements. PAGA’s 2024 revisions are designed to bring some relief to business, emphasizing the sooner an employer strives to achieve that ideal the better, with zero or reduced potential liability for those taking such initiative.
“PAGA provides employers the opportunity to cure, or correct, certain violations during the notice period and avoid PAGA litigation and penalties. For notices filed on or after June 19, 2024, the PAGA reform legislation expanded the types of violations that can be cured. Violations that can be cured now include claims for minimum wage, overtime, meal and rest breaks, necessary expense reimbursement, and all requirements for itemized wage statements, among others. All cure notices or proposal and cure disputes must be submitted online through the PAGA Filing Portal.” Private Attorneys General Act (PAGA) Frequently Asked Questions, California Labor Workforce Development Agency (LWDA) (2024).
Take Away:
As the LWDA’s FAQs underscore, correction of workplace practices under PAGA’s guidelines can involve many moving parts. Yet, whatever the cure, its cost in resources and attention are a vast savings over the often-crushing expense and potential business-ending consequences of a PAGA lawsuit that otherwise could have been avoided.
For more information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.
See also:
● Annual Virtual Seminar, Friday, January 17, 2025 or Friday, February 28, 2025, Covering Employment Legal Essentials and New Workplace Laws (October 10, 2024)
● PAGA Monster Declawed; Major Relief for Responsible Employers (June 28, 2024)
● PAGA Monster Grows More Legs – Best Protection Against Potentially Devastating Group Labor Claims is … Prevention (February 2, 2024)
● The PAGA Monster Is Hungry – Non-Compliant California Employers at High Risk under Special Law (May 14, 2021)
Tim Bowles
December 13, 2024