Legislature Amends Controversial ‘PAGA’ Employment Law After 20 Years
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California Legislature amends Private Attorneys General Act (PAGA) statute through Assembly Bill 2288 and Senate Bill 92 !
On July 1, 2024, Governor Newsom signed Assembly Bill 2288 and Senate Bill 92 into law, providing the most substantive changes to the Private Attorney General Act of 2004 (“PAGA”) in its 20-year history. AB 2288 amends Labor Code section 2699, while SB 92 amends Labor Code section 2699.5 and amends, repeals and adds Labor Code section 2699.3. These bills eliminate, narrow, and revamp many of the provisions that employees have long relied upon to collect Labor Code penalties for wage and hour violations
Expanded Provisions for Employers to Cure Violations
Previously, PAGA allowed employers to “cure” Labor Code violations in very limited situations (only certain wage statement violations could be cured). SB 92 expands the cure provisions under Labor Code Sections 226 (wage statement violations), 226.7 (failure to pay meal and rest period premiums), 510 (overtime), and 2802 (expense reimbursements).
This is significant as these types of violations are commonly alleged in PAGA actions.
For PAGA notices filed on or after October 1, 2024, the steps required for curing violations vary depending upon the size of the employer:
Small Employers:
Small employers (under 100 employees during the PAGA Period) may submit to the Labor and Workforce Development Agency (“LWDA”) a proposal to cure within 33 days of receipt of a PAGA notice. The LWDA will then schedule a settlement conference like those held by the Labor Commissioner for individual wage claims.
Large Employers:
Conversely, large employers (those that employed 100 or more employees during the PAGA Period) served with a civil complaint may request an early evaluation conference and request a stay of discovery and responsive pleading proceedings. The court must issue an order that schedules a mandatory early evaluation conference within 70 days. At the conference, the neutral evaluator will review the employer’s plan for curing violations, monitor compliance with the plan for a cure, and consider the employer’s efforts in limiting potential penalties.
The employer may file a motion to request the court to approve the cure and submit evidence showing correction of the alleged violations, if the plaintiffs or neutral do not find the cure sufficient.
Newsom has said he will sign the bills. They would then take effect immediately.