What To Do If You Get a PAGA Lawsuit

A Step-by-Step Response Plan

Do not ignore it. PAGA notices have strict response deadlines. Missing them can eliminate your cure options.

Immediate Steps (First 7–14 Days)

  • Engage experienced employment counsel immediately. PAGA litigation is specialized — general business attorneys may not be enough.
  • Issue a litigation hold on all time records, payroll data, schedules, handbooks, training materials, and manager communications.
  • Determine your employee count during the statute of limitations period to choose the right cure path.

The Cure Path

Small Employer (<100)

Submit a confidential cure proposal to the LWDA within 33 days of receiving the notice.

Large Employer (100+)

Request an early evaluation conference and stay of proceedings. Present cure plan within 21 days.

Concurrent Actions

  • Conduct an internal audit: Pull time records for all affected employees. Identify scope — how many employees, how many pay periods, total exposure.
  • Begin corrective action immediately: Even after filing, taking reasonable steps within 60 days of notice can cap penalties at 30%.
  • Evaluate settlement vs. defense: With average settlements exceeding $575K, early settlement may be more cost-effective — but strong compliance documentation can dramatically reduce exposure.
  • Challenge standing: Under reformed PAGA, verify the named plaintiff personally experienced each alleged violation.

Cost Calculator

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