What Is a PAGA Lawsuit and Why It’s Changing California Workplace Law
If you’ve ever heard the term “PAGA lawsuit” tossed around in a workplace dispute or a news headline, you’re not alone.
It may sound like something you don’t need in your life, but in California, it’s one of the most powerful tools employees have to hold companies accountable for labor law violations.
And PAGA has been shaking up the state’s employment landscape, affecting everyone from small businesses to Fortune 500 employers.
At In Motion Law, we help employees understand and exercise their rights under PAGA while helping employers navigate its growing impact.
What Is PAGA?
PAGA stands for the Private Attorneys General Act of 2004 (California Labor Code § 2698 et seq.).
It gives employees the power to act as private attorneys general, meaning they can sue their employer on behalf of the State of California for Labor Code violations. Those violations can range from unpaid wages and missed breaks to improper pay stubs.
Here’s the twist: PAGA claims aren’t traditional lawsuits for personal damages. They’re representative actions, designed to enforce California’s labor laws when the state doesn’t have the bandwidth to do it itself.
Essentially, California deputized employees to help police labor violations and share in the penalties when they win.
How a PAGA Claim Works
When an employee files a PAGA claim, they’re not just suing for themselves. They’re filing on behalf of all “aggrieved employees” who suffered the same violations.
Here’s how it typically plays out:
- Notice to the state: The employee (through their attorney) files a notice with the California Labor and Workforce Development Agency (LWDA) and the employer, describing the alleged violations.
- Waiting period: The LWDA has 65 days to investigate or take over the claim. If it doesn’t act, the employee is free to move forward with a lawsuit.
- The lawsuit: The employee files in court on behalf of themselves, other affected workers, and the state.
- Penalties: If successful, the court can impose civil penalties against the employer, which is often $100 for the first violation and $200 for each subsequent one, per employee, per pay period.
Those penalties can add up quickly. And the kicker? 75% of the penalties go to the State of California, while 25% goes to the affected employees.
Why PAGA Exists
Before PAGA, enforcement of California’s Labor Code was almost entirely up to the state. And let’s just say enforcement was… underfunded.
PAGA was California’s workaround: empower employees (and their lawyers) to fill the gap, giving them financial incentive to pursue workplace violations.
The idea was simple: if employers know that every employee could potentially become a whistleblower on behalf of the state, they’ll think twice before breaking wage laws.
We Help California Workers and Employers with PAGA Lawsuits
For employees, PAGA represents empowerment. It lets you seek justice for widespread labor violations. And not just for yourself, but for your coworkers too.
For employers, it’s a wake-up call to tighten compliance. Even unintentional mistakes in payroll, rest breaks, or wage statements can snowball into devastating liability.
At In Motion Law, we’ve helped employees and businesses alike navigate the complexities of California’s ever-changing labor laws, including those that deal with PAGA lawsuits. Here’s what the services of our lawyer include:
- Evaluate whether you have grounds for a PAGA claim
- File and manage the administrative process with the LWDA
- Negotiate settlements or litigate aggressively in court
- Guide employers in preventing future violations through compliance audits
Whether you believe your employer has violated California labor laws or you’ve been named in a PAGA lawsuit, reach out to In Motion Law to get legal counsel.
Get Legal Help with a PAGA Lawsuit
California’s workplace laws are always in motion. Make sure you have a lawyer who moves with them. If you think your employer has violated California labor laws, or if your company has been hit with a PAGA claim, now is the time to act, our lawyers at In Motion Law can guide you through every step. Call us at 619-693-8336 to schedule a consultation and discuss your legal options.
