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Thomas Hams, Samantha Manfredini Look
California’s Private Attorney General Act (PAGA) allows individual employees in California to “step into the shoes” of the government and seek civil damages on behalf of the state for violations of the California Labor Code. Two years ago, in response to concerns about the opportunistic use of PAGA by plaintiff’s attorneys, two bills were passed (AB 2288 and Senate Bill 92). However, the legislation did not work to curb filings as more than 9,000 PAGA actions were filed in 2024-2025. The Labor Workforce Development Agency (LWDA) is now proposing new regulations in another attempt to offer employers relief from the influx of filings and sizable defense costs with three areas of focus based on their determination of the most egregious abuses of the Act.
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Require More Specificity in Pre-Litigation Notices
In 2024-2025, about 25% of the approximate 9,000 filings were filed by the same five firms using generic notices that only differed in the names of the employees and employers listed. Without specificity, the LWDA could not assess which allegations required additional investigation. To remedy, it proposes that those who submit vague allegations receive a template notice requesting greater specificity.
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Identify High Frequency and Vexatious Litigants
New regulations suggest the identification of “high frequency fliers” who send more than 200 notices in a 12-month period. Filers in this category would be subject to increased scrutiny with certification by the attorney and client that the submission is truthful and not an attempt to bully or harass the employer. “Vexatious” filers, classified as those who continuously file noncompliant notices and burden their employers, are subject to additional review and potential prohibition from future filings without LWDA permission.
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Cure Violations
Under the proposed regulations, employers of all sizes will be given the opportunity to correct violations, eliminating the need for litigation. All employers will be able to remedy violations alleging inaccurate wage statements, while small employers (those with fewer than 100 people) can cure violations involving overtime, meal and rest breaks, and expense reimbursements. These confidential cure proposals, if submitted within 33 days of receipt of an LWDA letter, could not be used against an employer if litigation followed. Additionally, the LWDA would be allowed to try and resolve the issue with an employer directly without the need for litigation.
The public comment period for the proposed regulations has closed, but the regulations remain pending. If passed, employers may avoid some PAGA claim frequency and minimize costs associated with defending these claims. If you have any questions, please contact your Aon representative.
Source: Duane Morris LLP - California's Proposed New Regulations Aim to Curb PAGA's Most Egregious Abuses
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