What is PAGA?
“Paga” means “pay” in Spanish, which is an apt acronym for the California Labor Code Private Attorneys General Act (“PAGA”). In California, PAGA authorizes aggrieved employees to file lawsuits to recover civil penalties on behalf of themselves, other employees, and the State of California for an employer’s Labor Code violations. The aggrieved employees generally retain 25% of any civil penalty recovered and the remaining 75% goes to the California Labor and Workforce Development Agency (LWDA). Additionally, the aggrieved employee may bring separate claims for penalties the are directly recoverable by the employee. In short, a PAGA claim allows an employee to step into the state’s shoes to enforce certain labor code violations as it applies to the employee and other employees. Since employees who prevail on PAGA claims could recover attorney’s fees and costs in addition to the penalties as they apply to each employee, an employer’s potential exposure on PAGA claims are quite significant. Sending a written notice of a PAGA claim by certified mail to an employer (and online to the State of California) is the first step … Continue reading