Legal & Compliance Home
PAGA Reforms Provide Relief for Employers
On July 1, 2024, California Governor Gavin Newsom signed SB 92 and AB 2288 into law, significantly reforming PAGA.
September 24, 2024
The Private Attorneys General Act (PAGA) authorizes aggrieved employees to file lawsuits to recover civil penalties on behalf of themselves, other employees, and the State of California for Labor Code violations. On July 1, 2024, California Governor Gavin Newsom signed SB 92 and AB 2288 into law, significantly reforming PAGA. Some of the key points are outlined below:
- Stricter standing requirements in that a plaintiff must now have “personally suffered” each of the alleged Labor Code violations;
- A plaintiff can only seek penalties on behalf of other employees within a one-year period;
- A potential $25.00 wage statement penalty will instead apply when the employee could “easily determine from the wage statement alone” the required information (hourly rate of pay, hours worked, etc.) and where a claim is based on inaccuracies in the employer’s listed name and address when the employee would not otherwise be confused or misled about the employer’s identity;
- A $50.00 wage statement penalty will instead apply when the violation is an isolated, non-recurring event that does not extend beyond 30 consecutive days or four consecutive pay periods;
- The pre-existing heavy $200.00 “subsequent violation” wage statement penalty would only be available if, within five years, an agency or court determined that a policy or practice giving rise to a violation was unlawful, or if a court determines the employer’s conduct giving rise to the violation was malicious, fraudulent, or oppressive; and
- Cure provisions and caps on penalties have been expanded where reasonable steps were taken to comply with the law
These reforms apply to civil actions filed on or after June 19, 2024. Employers are encouraged to read the PAGA in its entirety for specifics and to work with their labor counsel to ensure compliance.
Topic: Legal and Labor Newsletters
Related Content
Workplace Violence Prevention Plan and Training Required in California Since July 1, 2024
9/24/2024
Under this law, employers must train their employees in California about the different types of workplace...
Los Angeles County Imposes Fair Chance Ordinance
9/24/2024
The Ordinance will impact job postings as well as how employers conduct and handle employee and job...
California’s film industry is in crisis. Can it be saved?
9/18/2024
California has a film and TV production problem. Industry professionals and experts are trying to...
Topic: Production Incentives
MoreTV Production Exodus: 'Misery in L.A.', Who's Getting 'Screwed' and What to Do About It
9/3/2024
As streamers ship series elsewhere, lawyers and producers vent, and the state (finally) takes action....
Topic: Production Incentives
MoreCalifornia vs. the World: The Race to Nab Film and TV Productions
8/22/2024
Locales from Atlanta to Tokyo are steadily beefing up their tax relief programs in bids to attract...
Topic: Production Incentives
MoreGeorgia Film Tax Credit Bill Fails
4/1/2024
Georgia lawmakers kill effort to cap film tax credits as production hub continues to rival California.
Topic: Production Incentives
MoreSB 1162: California Pay Data Reporting Law FAQs
2/17/2024
A look at California’s new expanded pay data reporting law and its impact on the entertainment industry.
California Pay Data Reporting Law Updates and Resources
2/8/2024
California recently made significant revisions to the State's pay wage reporting requirements. Get to know...