What is a PAGA claim? California's Private Attorneys General Act
A law that lets employees enforce the Labor Code like the State would, and how the 2024 reform changed it.
The Labor Code Private Attorneys General Act of 2004, known as PAGA, begins at Labor Code 2698. The Legislature created it because the State did not have enough inspectors to enforce the Labor Code. PAGA lets an employee step into the State's shoes and sue an employer for civil penalties.
Who can bring one
A PAGA claim is brought by an "aggrieved employee." Under the 2024 amendments, which apply to PAGA cases brought on or after June 19, 2024, that means a current or former employee who personally suffered each violation alleged, within the one-year limitations period (Labor Code 2699). Before the reform, an employee who suffered one violation could pursue penalties for other types of violations affecting co-workers; that is now more limited.
What it recovers
PAGA recovers civil penalties, the same kind of penalties the Labor Commissioner could assess, for violations affecting the employee and other aggrieved employees. Where a Labor Code section has no specific penalty, PAGA supplies a default penalty, generally $100 per aggrieved employee per pay period, with lower amounts in some situations after the 2024 reform (for example, isolated violations and certain paystub errors). PAGA does not, by itself, recover unpaid wages; those are recovered through wage claims, which are often brought alongside it.
Who gets the money
Penalties recovered are split between the State and employees. Under the 2024 reform, 65% goes to the Labor and Workforce Development Agency and 35% to the aggrieved employees (previously 75% and 25%). A successful employee can also recover reasonable attorney fees and costs.
What the 2024 reform changed
- Standing: the employee must have personally experienced the violations claimed.
- Penalty caps for employers that act: penalties are capped at 15% of the amount otherwise available for employers that took reasonable steps to comply before receiving a PAGA notice, and at 30% for employers that take them promptly after.
- Cure and early resolution: employers have more ways to fix ("cure") violations. Employers with fewer than 100 employees can submit a confidential cure proposal to the LWDA, and employers can request an early evaluation conference once a lawsuit is filed.
- Manageability: courts can limit the scope of claims to keep a PAGA case manageable.
Cases based on PAGA notices filed before June 19, 2024 are generally governed by the earlier version of the law.
Common PAGA violations
Meal and rest break violations, unpaid overtime, inaccurate paystubs (Labor Code 226), late final pay, unreimbursed expenses and misclassification are among the most common.
Arbitration agreements
An arbitration agreement can require the part of a PAGA claim based on your own violations to be arbitrated, but California's Supreme Court has held that the employee still has standing to pursue penalties for other employees' violations in court (Adolph v. Uber Technologies, Inc. (2023) 14 Cal.5th 1104). See PAGA vs. class action.
Deadline
PAGA penalty claims generally must be brought within one year of the violation (Code of Civil Procedure 340), and the clock is paused while the required notice period runs. See the PAGA notice process.