PAGA reform rewards employers that fix problems early
California's 2024 overhaul of the Private Attorneys General Act narrowed who can sue and capped penalties for employers that take reasonable steps to comply.
Reviewed by Laurence S. Bezinover · Published
What changed
For notices and lawsuits filed on or after June 19, 2024, an employee can bring PAGA claims only for violations they personally suffered within the one-year limitations period. Penalties are capped at 15% for employers that took all reasonable steps to comply before receiving a PAGA notice, and at 30% for employers that take reasonable steps within 60 days after it. Employees now receive 35% of penalties, up from 25%.
The reform also lets courts limit the scope of claims, lets employers cure certain wage-statement, meal and rest break, overtime, and expense violations, and created early-resolution procedures, including a confidential cure proposal for employers with fewer than 100 employees.
Who it affects
Every California employer, and employees considering PAGA claims.
Questions to raise with counsel
- Should we run a privileged wage-and-hour audit and document the fixes, to support the 15% cap?
- Do we have a plan to respond within 60 days if a PAGA notice arrives?
- Would a cure or early-resolution option fit before litigation costs build?
Sources
This briefing is general information about California law, not legal advice for your situation. Reading it does not create an attorney-client relationship.