PAGA Employment Claims Legislative Update: Key Reforms, Standing, Penalties, Arbitration, Cure Provisions

PAGA authorizes current and former employees who claim to have experienced Labor Code violations to act as private attorneys general and to recover civil penalties on behalf of the state of California, themselves, and other current and former employees. For years, this has resulted in a steady stream of representative PAGA lawsuits each year, with hundreds of millions of dollars in potential penalties at stake.

On July 1, 2024, two bills significantly reforming PAGA were signed into law that affect PAGA claims filed on or after June 19, 2024, and include, among other changes, more stringent standing requirements, expanded employer cure provisions, and limits on PAGA penalties in certain situations. Counsel must be aware of the impact these new laws have had on PAGA actions and how the courts have been enforcing this legislation over the past year. 

Counsel should also understand potential significant civil penalty exposure arising from PAGA claims as well as expanded opportunities to "cure" certain violations, PAGA's administrative exhaustion and more stringent standing requirements, and how to undertake (and limit) discovery in potentially sprawling actions.

Listen as our authoritative panel discusses PAGA and the impact of the 2024 legislative reform. The panel will address hot topics in this ever-evolving area of the law and offer best practices for employers to mitigate risk and exposure to PAGA lawsuits.