The Private Attorneys General Act (PAGA) is a powerful tool under California labor law that allows employees to file lawsuits against employers for labor code violations. Under PAGA, employees may file claims on behalf of themselves and other aggrieved employees for violations of the California Labor Code. Before filing a lawsuit, the employee must submit a written notice to both the employer and the California Labor and Workforce Development Agency (LWDA), outlining the alleged violations. This notice is commonly referred to as a “PAGA notice.”
The LWDA then has 65 calendar days to review the notice and decide whether to investigate. Although not required, employers can submit a response to the LWDA within the 65-day waiting period. This response may outline the employer’s side of the story, steps taken to cure violations (if applicable), or arguments disputing the claims.
If the LWDA does not pursue the claim, the employee can file a lawsuit in civil court. Unlike traditional class actions, PAGA lawsuits do not require class certification but can still involve significant exposure. Preparing early, including gathering relevant records and identifying potential witnesses, is essential as these cases are procedurally complex and carry significant financial risk, including civil penalties and attorney’s fees.
If you’re an employer and have received a PAGA notice, it is essential to understand the legal implications and act promptly to protect your business. If you’ve received a PAGA notice or have concerns about compliance with California labor laws, consider seeking legal guidance immediately. Proactive risk management can be your best defense.
