Under California law, there are several ways an aggrieved employee can bring a legal action for a labor law violation. While an employee may bring a direct suit for the damages they suffered, they can also sue for civil penalties on behalf of the state of California. Specifically, the Private Attorney General Act (PAGA) allows employees to act as private attorneys general for the purpose of enforcing public rights. If you’ve been subjected to a workplace violation, it’s best to consult with an employment law attorney who can discuss your legal options and determine whether filing a PAGA claim is the right course of action in your case.

Key Takeaways

• The Private Attorney General Act allows employees who have been subjected to labor law violations to act as private attorneys general to recover civil penalties.
• The Act allows employees to bring claims for a wide range of violations, including wage, meal break, and rest break violations, employee misclassification, and safety violations.
• Due to the 2024 PAGA reforms, employees can now recover 35% of the share of collected penalties, with the remaining going to the Labor Workforce Development Agency.

What is the Private Attorney General Act?

The Private Attorney General Act is a California law that is meant to help enforce the state’s Labor Code by permitting private citizens to step into the shoes of the Labor Commissioner. It allows employees who have been subjected to a violation of the labor law to file a lawsuit against the employer in order to recover civil penalties on behalf of themselves, and other employees. Prior to the passage of the Act in 2004, these penalties could only be recovered by the state.

The Act allows employees to bring claims for a wide range of violations, including the following:

• Unpaid wages
• Meal break violations
• Rest break violations
• Employee misclassification
• Inaccurate wage statements
• Illegal time rounding
• Workplace safety violations
• Missing final paychecks

While PAGA claims are similar in some ways to class actions, they do not require certification. Specifically, PAGA claims are “representative actions” that are filed on behalf of the state and focus on penalties, rather than unpaid wages. However, a PAGA claim comes in two parts. These actions must also include a separate individual claim that an employee brings on behalf of.

What are the Requirements for Filing a PAGA Claim?

An employee who intends to file a Private Attorney General Act claim must meet the requirements set forth under California Labor Code 2698 - 2699.8. These include the following:

• File a written notice: Before moving forward with a PAGA claim, a notice must be filed with the Labor Workforce Development Agency (LWDA) stating the employee’s intent to bring a legal action. The notice must include the specific violations of the labor code and details regarding the facts of each violation. This notice can be submitted online.
• Serve the employer with the notice: After the notice has been submitted to the LWDA, it must be served on the employer via certified mail. Employers have a 33-day time frame to cure the violation from the date the notice is postmarked.
• Allow the LWDA time to investigate: After the notice has been filed with the LWDA, the agency will determine whether it will proceed with an investigation. In the event the LWDA fails to take action within 65 days, the employee can file a lawsuit.
• File a lawsuit: If an employee decides they will file a lawsuit in court, they must demonstrate they were personally aggrieved by the employer’s violation.
• Meet the statute of limitations: A PAGA claim must be filed within a time frame of one year from the date of the last violation.

Arbitration is typically required for the individual portion of a PAGA claim if an arbitration agreement is in place. The California Court of Appeals has held that an aggrieved employee cannot attempt to circumvent the arbitration requirement by declining to assert their own individual claim.

What Remedies are Available in a PAGA Claim?

As a result of the 2024 California Private Attorney General Act reforms, employees can now receive a 35% share of the collected penalties, an increase from the previous allowance of 25%. In addition, 65% of the penalties now go to LWDA under the new law, a reduction from the previous 75%. The reforms apply to PAGA actions commenced on or after June 19, 2024.

A civil penalty of $100 can be imposed under PAGA for an initial violation, and $200 for repeated ones. The PAGA reform law allows for increased penalties of $200 per aggrieved employee for each violation per pay period if the employer’s conduct was egregious, malicious, or oppressive. The statute also expressly allows for an award of reasonable attorney fees and court costs to an employee who prevails in a PAGA lawsuit. However, a penalty will not be imposed on an employer if they cure the violation and make the employee whole after they have received the PAGA notice.

Under the PAGA reforms, a court may grant injunctive relief to prohibit employers from continuing the actions that violate the labor law. This is not only meant to help ensure employers change their conduct, but also to deter future violations.

Contact an Experienced California Employment Law Attorney

If you’ve been subjected to a labor law violation, it’s essential to have an attorney by your side who can help ensure your employer is held accountable for their wrongdoing. The attorneys at Optimum Employment Lawyers provide trusted representation for a broad scope of employment issues in California, including those involving Private Attorney General Act claims. Contact us online or by calling (949) 391-2327 to schedule a consultation to learn how we can help.