By Dan Gildor

It’s been almost 10 months since the 2024 amendments to California’s Private Attorneys General Act (PAGA) went into effect. What, if anything, has changed?

Not much.

According to the Labor and Workforce Development Agency’s data, the number of PAGA filings has largely stayed the same. Moreover, while some small employers have tried to take advantage of the new cure provisions, most either don’t qualify because they employ more than 100 employees or because they simply deny the violations rather than take required corrective actions.

It seems then that the main impact on the ground is that an employee bringing a PAGA action must now have personally experienced each alleged violation within the one-year statute of limitations, making it harder for employees to stand up to protect the rights of every worker in their company. A knowledgeable PAGA attorney can help navigate this new requirement and evaluate whether a claim is still viable under the amendments.

On the plus side, aggrieved employees will now receive 35% of the civil penalties as opposed to 25% previously and can also sue for injunctive relief to force employers to stop unlawful practices. A skilled PAGA attorney can ensure that these increased penalties are properly pursued in litigation or settlement discussions.

Are the Amendments Working as Intended?

Granted, it has only been 10 months since the amendments went into effect; so there is very little information available about the impact that the amendments are having.

The amendments were touted by business interests as a necessary “fix” to a broken system that penalized California companies, all of whom are trying hard to comply with California law. The amendments promised a more efficient system with better outcomes for both employers and workers.

As noted above, early evidence suggests most employers are continuing to engage in business as usual, denying that they are doing anything wrong in lieu of listening to and addressing worker complaints. This evidence suggests the real motive underlying the amendments—making it harder for workers to hold their employers accountable for violating their rights. In this climate, representation from an experienced PAGA attorney has become even more essential.

What This Means for California Workers

The early evidence makes clear that workers in California will still have to take action to protect their rights under the Labor Code. Employers—notwithstanding the rhetoric—are not going to stop engaging in wage theft and make their workers whole—or cease other violations of the Labor Code—simply to avoid the imposition of substantial penalties.

Penalties must substantially outweigh potential profits from violations to effectively change behavior. Research by the Economic Policy Institute shows that labor law penalties are “woefully insufficient” compared to other regulatory violations, often functioning as “the cost of doing business rather than as deterrents.” In fact, studies by the UCLA Labor Center show that less than 2% of stolen wages are ever recovered through official channels, highlighting why meaningful penalties are necessary.

Will California employers start engaging in audits to identify potential violations and engage with their workers to correct the violations and pay the workers what they were otherwise owed?

Time will tell.

In the meantime, PAGA remains a crucial tool for addressing workplace violations. If you believe your workplace rights have been violated, you should document everything thoroughly and consult with a PAGA attorney promptly. But most importantly, don’t be discouraged by the amendments. We can help.

How Our Firm Can Help

If you’ve been the victim of wage theft, denied proper meal or rest breaks, been misclassified as an independent contractor, or are subject to an unlawful working condition like an absence control policy that counts sick leave as an absence, subject to a non-compete/non-solicitation provision, or have unpaid or underpaid overtime, contact us today to discuss your rights.

Our firm specializes in PAGA claims under these new amendments. A PAGA attorney on our team can determine if you have a viable claim, ensure proper notice filing, and develop strategies that account for the new requirements.

Don’t let these amendments discourage you from seeking justice. Contact us today for a free consultation.

Disclaimer: This blog post is for informational purposes only and should not be construed as legal advice.