Big vs. Small Business

Different Rules, Different Exposure

Cure Process by Business Size

Feature Small Employer (<100) Large Employer (100+)
Cure mechanism Confidential proposal to the LWDA Early evaluation conference in court
Timeline 33 days from receipt of notice 21 days to submit cure plan
Decision maker LWDA Court-appointed neutral evaluator
Litigation stay N/A (administrative) Yes — mandatory stay during evaluation
If cure accepted Plaintiff cannot proceed Joint statement submitted as proposed settlement

Exposure Scales With Headcount

Penalty Type 25 Employees 100 Employees 500 Employees
Base PAGA penalties (1 year) $65K – $130K $260K – $520K $1.3M – $2.6M
With premium pay stacking $200K+ $800K+ $4M+
With 15% “reasonable steps” cap $30K $120K $600K
Key takeaway: Regardless of size, the “reasonable steps” defense is the single most powerful tool to reduce exposure. Small businesses have an arguably more favorable (confidential, administrative) cure process.

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