2024 PAGA Reforms

AB 2288 & SB 92 — Signed July 1, 2024

Governor Newsom signed two landmark bills reforming PAGA. These changes apply to claims where the LWDA notice was filed on or after June 19, 2024.

What Changed

Heightened Standing

Plaintiffs must now have personally experienced each specific violation they pursue on behalf of others.

Employee Share Increased

Aggrieved employees now receive 35% of penalties (up from 25%).

New Penalty Caps

Scenario Penalty Cap
Employer took “reasonable steps” before receiving PAGA notice15% of applicable penalties
Employer took “reasonable steps” within 60 days after notice30% of applicable penalties
Isolated, nonrecurring violation (<30 days or 4 pay periods)$50 per pay period
Wage statement violation causing no harm$25
Employer acted maliciously or fraudulently$200 per pay period

What Are “Reasonable Steps”?

  • Conducting periodic payroll audits and curing violations found
  • Maintaining and enforcing lawful written policies
  • Training supervisors on Labor Code and Wage Order compliance
  • Taking corrective action against non-compliant supervisors
Bottom line: Employers who invest in compliance before a lawsuit can now reduce their penalty exposure by up to 85%. Proactive compliance has never been more valuable.

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