California’s Private Attorneys General Act (PAGA) was updated on July 1, 2024, to give employers more options to fix problems before incurring hefty penalties, while ensuring workers are paid quickly. Here’s a snapshot of the main “cure” rules:
Expanded Scope & Deadlines
Under the new law, more Labor Code violations—like unpaid overtime, meal and rest breaks, and certain wage statement errors—can be cured. But after getting a PAGA notice, employers generally only have 33 days to propose a correction plan to the Labor and Workforce Development Agency (LWDA). Small employers (fewer than 100 employees) can request an LWDA “cure conference” and then have up to 45 days afterward to finalize the fix. If everything is resolved within these timelines (including back wages, interest, and corrected practices), then the PAGA claim cannot proceed.
Penalty Caps & Dollar Reductions
If an employer took “all reasonable steps” to comply before any notice, penalties may be capped at 15% of what would normally apply. Even if the employer only fixes violations after receiving a notice but does so within 60 days, penalties drop to 30%. For certain technical wage statement errors (like minor formatting issues), the per-pay-period fine can fall from $100 to $25 if the mistake didn’t truly mislead employees because the employees could still easily determine the accurate required information based on the paystub alone. These reductions aim to reward genuine efforts to follow the law.
Ensuring Workers Are Made Whole
To qualify as a valid cure, employers must pay all back wages (up to three years), plus interest, and issue corrected pay stubs if needed. Employers also cover employees’ reasonable attorneys’ fees tied to the PAGA notice. If a court or the LWDA signs off, no further penalties apply—unless the same violation recurs within a year.
Alternative Resolution & Preventing Abuse
Beyond curing, the law encourages early evaluation conferences or mediation to reach quick settlements. Small businesses in particular benefit from the LWDA’s guidance to avoid drawn-out litigation. However, if an employer refuses to fix serious breaches or acts with malice, courts can still impose higher penalties—even doubling them in cases of willful wrongdoing.
Overall, these strengthened cure procedures promote early resolution and fair outcomes, letting employers correct honest mistakes while ensuring workers aren’t left shortchanged.