PAGA Corner – What You Must Watch For
ISSUE: The Private Attorney General Act (“PAGA”) enables individuals to file “representative actions” against their employers. A representative action is a lawsuit a person brings on behalf of oneself and all similarly aggrieved employees. In addition to traditional Labor Code violations, such as the failure to provide meal and rest breaks, PAGA enables employees to recover penalties for each violation per pay period per employee (usually $50-$100), with subsequent violations penalized at higher rates ($100-$200). Additionally, unlike a class action, the employee bringing the suit doesn’t need to satisfy the traditional class action requirements which are difficult to satisfy.
TAKEAWAYS: Employers may wish to ensure that employees are clear about procedures to follow when the business receives a letter demanding the payment of penalties under PAGA. The law allows employers to cure certain violations, but only within a short period of time. Businesses should contact their legal team as soon as they receive a PAGA action.
Please contact David Jones for more information