California recently enacted legislation significantly reforming the state’s Private Attorney General Act (“PAGA”), which permits individuals to pursue penalties for employer violations of the California Labor Code provisions on their own behalf and on behalf of other “aggrieved employees.”

The reforms do not eliminate employer exposure to penalties under PAGA. Rather, the reforms:



• impose new requirements on employees seeking to assert PAGA claims;
• place caps on employers’ exposure to liability; and
• implement new procedures that reward employers for taking reasonable measures to avoid violations in the first instance and promptly correcting violations that occur despite those efforts.

These reforms make it more important than ever for employers to: (1) regularly review their employment policies, practices and procedures for compliance with California regulations and statutes; (2) develop and distribute up-to-date California-compliant written policies applicable to their California employees; and (3) investigate any notice of a PAGA violation, or other alleged wage violation promptly and, if warranted, take prompt remedial action. By doing so, employers may take full advantage of the recent PAGA reforms.

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If you have questions or would like additional information, please contact our Labor & Employment attorneys or the primary EGS attorney with whom you work.