California’s Labor Code Private Attorneys General Act of 2024 (PAGA) lets employees harmed by their employer’s labor law violations stand in for the state to recover monetary penalties called civil penalties. These penalties apply to every pay period in which a violation occurred for any of the employer’s California workers. Common examples include failing to pay minimum wage or overtime, not providing meal breaks, or issuing incorrect paystubs. PAGA also covers issues like retaliation for reporting wrongdoing, wage and hour violations, and workplace safety problems.
On July 1, 2024, Governor Gavin Newsom signed a bill that, in some ways, loosens PAGA rules while tightening them in others. If employers fix problems before they receive a PAGA notice—or quickly fix them after getting one—and make workers whole, there’s now a limit on how much they can be fined. The new law also adds procedures to fix violations and encourages alternative dispute resolution, aiming to cut down on lengthy court cases.
At the same time, the updated law allows courts to double penalties for employers who act maliciously, fraudulently, or oppressively. The share of civil penalties that employees receive has also increased—from 25% to 30%—likely boosting the incentive for workers to speak up about labor law violations.