What is the Private Attorneys General Act (“PAGA”)?
Passed into law in 2004, PAGA is a mechanism through which aggrieved employees may sue their current or former employer—on behalf of themselves, other employees, and the State of California—to recover civil penalties for various California Labor Code violations. As the name implies, PAGA enables an aggrieved employee to act as a private attorneys general, meaning an aggrieved employee may pursue civil penalties under PAGA as though they were a state agency. Prior to PAGA’s passage in 2004, this was a power reserved to the State of California.
To whom does PAGA apply?
A PAGA action may be initiated by an aggrieved employee against their current or former employer. For the purposes of PAGA, an aggrieved employee is any individual who has been employed by an employer that has violated the Labor Code or Wage Order. An aggrieved employee may generally file a PAGA action on behalf of themselves and/or other aggrieved employees for any violations within the past year from the date the action is filed.
To initiate a PAGA action, the aggrieved employee is required to file their claim online with California’s Labor & Workforce Development Agency (“LWDA”) and provide notice to the employer via certified mail. New PAGA claims are required to describe in detail all facts evidencing the employer’s alleged Labor Code and Wage Order violations. Once a new PAGA claim is filed, the LWDA has 65 days to determine whether they will prosecute the employer themselves; if not, the aggrieved employee may then file their PAGA lawsuit with the court.
What are the penalties for a PAGA lawsuit?
Despite an aggrieved employee’s right to represent not only themselves through PAGA, but other aggrieved employees as well, PAGA actions are not class action lawsuits. Unlike class actions, which are lawsuits for compensation, PAGA operates as a law enforcement mechanism. For employer’s, this means penalties under PAGA can add up very quickly.
For each initial instance of a violation under PAGA, an employer will be fined $100 per aggrieved employee per pay period; each subsequent violation then carries a penalty of $200 per aggrieved employee per pay period. Given the complexity of California’s Labor Code and Wage Order laws, it is often the case that an employer is unwittingly in violation of these laws for months or years on end. Because of this, it is crucial for employers to ensure they are in compliance with the latest Labor Code and Wage Order laws in California.
How can Rupal Law help you?
With the fast-paced and ever-changing wage laws throughout California, complying with PAGA is a challenge for any employer, big or small. As an employer, the best way to protect yourself from a PAGA claim is to consult with an attorney to ensure your company is not violating any of California’s Labor Code and Wage Order laws.
Here at Rupal Law, we have experience defending employers against their existing PAGA claims, while at the same time taking a forward-focused approach to protect our clients from any future PAGA claims.
For an obligation free consultation, please email us at info@rupallaw.com, or give us a call at (951) 460-0830.
