Understanding the 2024 PAGA Reforms: What California Employees Should Know About Their Rights

The Private Attorneys General Act (PAGA) is a powerful tool that allows employees in California to hold their employers accountable for labor violations. In 2024, significant changes were made to PAGA, which could impact how workers can enforce their rights. At Guerra & Casillas LLP, we are here to help you understand what these changes mean for you as an employee and how they affect your ability to take legal action against unfair workplace practices.

What Is PAGA?

The Private Attorneys General Act allows employees to step into the shoes of the state’s labor commissioner and file lawsuits for California Labor Code violations. If your employer violates your rights under California labor laws, PAGA enables you to seek penalties on behalf of yourself and other employees affected by similar violations.

What Are the Key Changes to PAGA in 2024?

The 2024 PAGA reforms, introduced through AB 2288 and SB 92, brought several updates that may affect your ability to bring a claim. These reforms aim to reduce the number of frivolous lawsuits while still protecting the rights of workers who have been wronged by their employers.

Here’s what you need to know:

1. You Must Personally Experience the Violations You Sue For

Under the new law, employees can no longer sue for labor violations they did not personally experience. This means that if your employer committed multiple labor violations, you can only file a claim for the specific ones that directly impacted you.

Why it matters: This change narrows the scope of claims, but if you have suffered from a violation, your claim will now focus on the specific wrongs you faced, ensuring that your voice and experience are central to the case.  This frustrates the holding of Huff v. Securitas Sec. Servs. USA Inc., 23 Cal. App. 5th 745 (2018) which held that a plaintiff had standing to pursue PAGA penalties for Labor Code violations they had not personally experienced, so long as the plaintiff was affected by at least one other Labor Code violation alleged in the complaint.

2. Shorter Timeframe for Filing PAGA Claims

The reforms affirm that PAGA claims must be filed within one year of the violation pursuant to Code of Civil Procedure Section 340, unless the employer us a qualified nonprofit legal aid organization. Cal. Lab. Code § 2699(c)(1)-(2).  This means employees must act quickly to report labor code violations and file their claims before the statute of limitations runs out.

Why it matters: Don’t delay if you believe your employer has violated your rights—timing is critical. Waiting too long could mean losing your ability to file a PAGA claim altogether.  This contravenes the holding in Johnson v. Maxim Healthcare Servs., Inc., 66 Cal. App. 5th 924 (2021), which allowed the pursuit of a PAGA action for individual time-barred claims.

3. Manageability of Cases

The new law gives courts more power to manage PAGA claims, especially if they are overly complex or involve many employees. This means that courts can award injunctive relief, id. § 2699(e), (k); codifying Estrada v. Carpet Royalty Mills, Inc.’s holding authorizing a court to limit the evidence presented or scope of claims for manageability reasons, (2024) 317 Cal. Rptr. 3d 219, id. § 2699(p); and enabling courts to consolidate or coordinate civil actions against the same employer, id. § 2699(q).

Why it matters: For workers, this can make the process smoother and faster, as courts will aim to streamline cases. It also means that you can expect a more straightforward approach to your claim without unnecessary complications.

4. Employers Can Cure Some Violations

In certain situations, like wage statement violations, employers now have the chance to correct the issue before facing full PAGA penalties. If the employer fixes the violation and compensates the affected employees, they can avoid penalties.  The courts will review whether employers took “all reasonable steps to be in compliance” with the alleged Labor Code violations, which may allow for a reduction of civil penalties.

Why it matters: While this change allows employers to correct their mistakes, it also puts pressure on them to take swift action. If your employer offers a remedy, it’s important to ensure they fully compensate you for the harm caused.

5. Limits on Stacking Penalties

One of the significant changes in the 2024 PAGA reform is that penalties for certain violations cannot be “stacked.” This means that employees will not be able to seek multiple penalties predicated on, or purely derivative of, the same Labor Code violation unless it was intentional or willful.  Under current California law, this means that, if the employer has a “good faith dispute” defense to the claimed violation, civil penalties cannot be recovered for a violation of Labor Code Sections, 201, 202, 203, 204, or 226.

Why it matters: While this limits the total penalties your employer may face, it does not reduce your right to fair compensation for violations that harmed you. If the violations were serious or intentional, full penalties will still apply.

6. More Money Apportioned For Employees

Prior to the amendments, aggrieved employees were awarded only 25% of the total civil penalties recovered, with remaining 75% going to the Labor and Workforce Development Agency (LWDA).  The PAGA amendments increase the percentage of civil penalties that go to the employees to 35%.

Why it matters: This change means that employees could now benefit from a larger share of penalty recoveries, providing greater financial incentives for workers to pursue claims and enhancing compensation for labor violations.

6. Reduced Penalties and Delineations for “Subsequent Violations”

The Labor Code prescribed PAGA penalties at $100 for each aggrieved employee, per pay period, for initial violations, and $200 per aggrieved employee, for each pay period, for subsequent violations. With the PAGA amendments, the $100 penalty for each aggrieved employee is reduced to either $25 or $50 depending on the violation.

• The $25 penalty is for failure to include required information on a wage statement. Id. § 2699(f)(2)(A)(i).
• The $50 penalty is for alleged violations resulting from an isolated, short-duration event lasting no more than the lesser of 30 days or four pay periods. Id. § 2699(f)(2)(A)(ii).

The $200 penalty for subsequent violations are limited to violations where: (1) within the five years of the prior violation, the LWDA or a court issued a ruling that the policy or practice was unlawful or (2) a court determines that the employer’s conduct that gave rise to the violation was malicious, fraudulent, or oppressive.  Id. § 2699(f)(2)(B).

Why it matters: These changes could affect how much compensation employees receive. For minor violations, penalties may be lower. However, if the employer’s actions were harmful or dishonest, penalties could still be higher, ensuring fair compensation in serious cases.

What Do These Reforms Mean for Employees?

These changes may affect how you file PAGA claims in California, but the main goal of PAGA is still the same: holding employers accountable for labor code violations. If your employer has violated your rights, you still have the legal right to file a claim. The process is now more focused and streamlined to ensure that serious violations are prioritized.

While the reforms may limit some of the broader claims seen in the past, they help ensure that employees who have experienced real harm are the ones bringing the claims. This should lead to more impactful lawsuits that focus on addressing genuine workplace issues.

What to Do If You Experience a Labor Violation

If you believe your employer has violated California’s labor laws, it’s important to act quickly. The statute of limitations for PAGA claims is limited, so start gathering evidence and seek legal advice as soon as possible.

At Guerra & Casillas LLP, we’re dedicated to protecting employees and ensuring your rights are upheld. Our experienced team specializes in PAGA cases and can guide you through every step, from identifying the violation to seeking compensation.

If your employer has denied you overtime, provided incorrect wage statements, or committed other violations, you deserve justice. Don’t let the recent reforms stop you from taking action—your rights matter, and we’re here to fight for them.

Will These Changes Go Into Effect?

It’s important to note that the 2024 PAGA reforms will only take effect if SB 92 of the 2023–24 Regular Session is enacted and takes effect on or before January 1, 2025. Be sure to stay updated on legislative developments to understand how these changes might impact your rights.

How Guerra & Casillas LLP Can Help You

If your employer has violated your rights under California labor laws, you don’t have to face it alone. At Guerra & Casillas LLP, we fight for employees who have been wronged and ensure that employers are held accountable under PAGA. Whether you’re dealing with wage violations, denied meal breaks, or any other labor violation, our team can help you navigate the legal system and secure the compensation you deserve.

Call Guerra & Casillas LLP today at  213-437-9495 for a free consultation and let us help you stand up for your rights.