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Defining and Defending Against PAGA (Private Attorneys General Act) Action
California employers may be asking what a PAGA Claim is? According to the California Labor & Workforce Development Agency website, “PAGA allows employees to assist the state in enforcing labor laws by suing their employers to recover civil penalties for Labor Code violations on behalf of the state. Civil penalties assessed and collected under PAGA is California’s attempt to help deter unlawful conduct and encourage compliance with labor protections.”
What Are the Most Common Types of PAGA Claims in California?
PAGA claims generally revolve around wage and hour violations, such as:
- Meal and Rest Breaks: Non-exempt employees are due unpaid meal periods that must be taken no later than the end of the fifth hour of work. The no less than 30 minute meal period must not be denied or deterred and may not be interrupted. They are due another one if they work over 10 hours. A meal break can be waived in writing by the employee (although only one of the meal breaks can be waived if an employee works over 10 hours). If a non-exempt employee works 3.5 hours or more, a no less than 10 minute rest break is required.
- Unpaid Overtime: Claims may also involve the misclassification of employees as “exempt” versus “non-exempt” in order to be classified as ineligible for overtime pay (non-exempt employees are required to receive overtime pay), as well as miscalculation of overtime pay that does not include compensation like commissions or bonuses, or rounding errors.
- Off-the-clock Work: Employers may not understand that required “off-the-clock” pay includes the time it takes an employee to put on safety gear, or respond to work-related emails, or have their bags checked upon entering the work environment, when they have not officially clocked in.
- Paystub Violations: PAGA attorneys understand that employers are legally required to include certain information on paystubs as required by the Labor Code. PAGA claims result when this is not the case, and these claims are easily avoided with the right PAGA preparedness.
- Required Business Expenses Not Reimbursed: When it is necessary to use a cell phone, or one’s personal vehicle, or home internet to do one’s job, it is legally considered a reimbursable expense in California. When this does not happen, it may result in a PAGA claim.
At Chauvel & Glatt, we understand that employers and business owners are consumed with day-to-day business and organizational operations, as they should be. Still, any employer can potentially be adversely impacted by all of the possible situations noted above. The good news is that risks can be foreseen and minimized when there are proactive compliance procedures in place, which means partnering with a PAGA firm with your best interests at heart.
How Does an Employer Defend Against PAGA Claims?
An employer needs the assistance of a PAGA attorney they can trust and feel comfortable with to defend against PAGA claims. PAGA defense is not something any employer should attempt going alone without engaging a PAGA attorney that is an expert in this relatively new and somewhat complicated area of employment law. Although PAGA was enacted in 2004, reforms of the law were enacted in 2024 that are extensive and often called “new PAGA.” This is good news for employers who act in good faith.
New PAGA reforms have resulted in more stringent requirements for what an employee can claim and what constitutes a legitimate violation. The employee must have experienced the alleged violation firsthand. If a claim is found to be valid, however, the percentage payout to the employee versus the State of California is higher: 35% versus 25% before new PAGA.The reforms make it easier, more fair, and potentially less costly for employers to provide a “cure” for actual violations, with incentives for doing so expeditiously. A key goal of the PAGA reforms was to prevent frivolous PAGA lawsuits from occurring. Still, filings of PAGA claims remain high.
In order for an employer to take full advantage of new PAGA reforms and ensure that they are providing a legally compliant cure as quickly as possible, it is in their best interest to hire a professional and highly experienced PAGA defense team, and one whose goal is to arrive at a solution before the PAGA claim results in a PAGA lawsuit. One like Chauvel & Glatt.
PAGA Defense Buffered by PAGA Preparedness
At Chauvel & Glatt, we partner with each of our highly appreciated clients to ensure that they are well-prepared and compliant so that risks are minimized. We provide guidance to remedy any deficiencies your business or organization may have to stave off a PAGA claim. If one does arise, we will review the PAGA letter and provide a detailed assessment and evaluate your case to determine if there are legitimate claims, whether a cure is possible, and best next steps for you and your company, depending on what we find through our audit. Our goal is to protect your rights – we are on your side!