The Private Attorneys General Act of 2004 (PAGA) in California permits an aggrieved employee to bring a civil or class action suit against an employer to seek damages for wrongdoings as well as pursue penalties for alleged Labor Code violations on behalf of the Labor Workforce Development Agency. Of the amount of recovered penalties in that situation, the LWDA receives 85% and the aggrieved employee(s) receive the remaining 25%.
Recent negotiations to the PAGA led to two bills (Assembly Bill 2288 and Senate Bill 92) being signed into law on July 1, 2024. These amendments limit the claims allowed to be asserted, as well as the penalties permitted to be imposed in future PAGA lawsuits. Most go into effect immediately, applying to any PAGA actions filed on or after June 19, 2024. However, some provisions will take effect on October 1, 2024.
This article is informational and does not constitute legal or financial advice. Consult with an employment lawyer or accountant for additional clarification on how these changes impact your company.
