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 (Updated 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
California's New Post-Production Tax Credit: Rates, Eligibility, and Funding for 2027
10/14/2026
AB 2319 creates California's first standalone post-production tax credit, effective 2027. See who...
Topic: Production Incentives
MoreWaiting for Jon Voight, Hollywood’s would-be savior
8/31/2026
Jon Voight, Trump's Hollywood ambassador, is quietly driving a federal film tax incentive with bipartisan...
Topic: Production Incentives
MoreThe Massive Moviemaking Exodus from Hollywood
8/17/2026
From Illinois to the Canary Islands and Cape Town, governments have turned film production into an auction...
Topic: Production Incentives
MoreSales Tax Will Apply to Digital Products Starting in January 2027
7/31/2026
As part of California’s budgetary strategy, the Legislature recently enacted an upcoming expansion of...
Topic: California
MorePay Data Reporting Expands Starting with 2026 Reporting Year
7/31/2026
The California Civil Rights Department (“CRD”) expanded the reporting requirements for the state’s annual...
Risk Assessments & Cybersecurity Audit Certification Requirements (Rolling Deadlines: 2026–2030)
7/31/2026
Regulations from the California Privacy Protection Agency (CPPA) require businesses to conduct a risk...
Tax Incentive Showdown: Where the Money Is State-by-State
4/17/2026
A domestic bidding war is underway as the fight to keep production in the U.S. floods the market with new...
Topic: Production Incentives
MoreCalifornia Film Tax Credit 4.0: Spring 2026 Application Windows
2/17/2026
Film and TV producers, the next window for CA tax credit applications opens March 2nd.
Topic: Production Incentives
More