Class Action And PAGA Defense For California Employers
California has a unique law called the Private Attorneys General Act (PAGA) that allows an employee to sue their employer in a representative lawsuit seeking civil penalties on behalf of themself and all other allegedly aggrieved employees. The lawsuit does not need to follow formal class action procedural requirements.
Allegations in a single lawsuit can quickly add up to hundred of thousands, if not millions, of dollars in potential exposure for an employer because penalties are assessed per violation, per employee, per pay period. If any civil penalties are recovered in a PAGA lawsuit, the amount is divided such that only 25% goes to the alleged aggrieved employees, while the other 75% goes to the State of California. A plaintiff’s attorney can then collect their fees on top of the penalty recovery.
At Rediger Labor Law, we can help your business address PAGA claims swiftly and effectively. Our lawyers focus exclusively on representing employers in labor and employment matters. We understand the intricacies of state and federal employment laws, including PAGA.
Curing PAGA Violations: A Limited Window Of Opportunity To Potentially Reduce Exposure
PAGA provides employers with a limited opportunity to fix (or “cure”) a specific subset of alleged violations underlying PAGA claims at the outset. If done in a timely manner, some of the penalty exposure may be reduced.
Contact legal counsel as soon as you receive a PAGA notice to make sure you do not miss an opportunity to cure a potential violation before a PAGA lawsuit is filed.
Wage And Hour Class Action Defense
Our firm has particular expertise in defending class action lawsuits brought by one or more employees on behalf of a larger group of employees. These claims often involve wage and hour issues such as:
- Alleged missed meal periods
- Missed rest breaks
- Unpaid overtime
- “Off-the-clock” work
- Prevailing wage violations
- Failure to pay the minimum wage
- Misclassification of nonexempt employees
- Unfair Competition Law (UCL) violations
We are experienced in litigating class action lawsuits through trial. Our attorneys have also reduced the potential exposure of our clients by:
- Preventing lawsuits from being certified as class actions
- Negotiating favorable settlements
- Obtaining dismissals of class action complaints in California state and federal courts
Frequently Asked Questions About PAGA And Class Action Defense In California
California employers facing PAGA notices or wage and hour class actions often have urgent questions about their rights, obligations and potential exposure. The following answers address common concerns we hear from businesses in Sacramento and throughout California that are navigating complex employment litigation.
Can a former employee bring a PAGA claim against our company?
Yes. A former employee may have standing to pursue a PAGA claim if they were allegedly subjected to one or more Labor Code violations during their employment and completed the required administrative steps before filing suit.
Unlike many employment claims, a PAGA action allows an employee to seek civil penalties not only for themselves but also on behalf of other allegedly aggrieved employees. As a result, claims brought by a single former employee can create significant exposure for an employer.
PAGA claims often involve technical wage and hour issues, and employers should promptly evaluate the allegations, preserve relevant records and assess whether any potential cure opportunities exist under California law.
How do we communicate internally without creating bad evidence?
One of the most common mistakes employers make after receiving a demand letter, PAGA notice or lawsuit is creating internal communications that may later be discoverable in litigation.
Management, HR personnel and supervisors should avoid speculation, assigning blame or making informal comments about the allegations. Internal investigations should be conducted thoughtfully and, when appropriate, under the direction of legal counsel to maximize applicable privileges and protections.
Important considerations include:
- Limiting discussions to individuals with a legitimate business need
- Preserving relevant documents and electronic communications
- Coordinating investigations through counsel when appropriate
- Avoiding unnecessary written commentary about disputed facts
Early legal involvement can help employers respond effectively while reducing the risk of creating harmful evidence.
Can we negotiate confidentiality in a PAGA or class action settlement?
Confidentiality provisions are common in many employment settlements, but they may be more limited in PAGA matters because a substantial portion of any recovery is paid to the state of California.
Whether confidentiality can be negotiated depends on the type of claims involved, court approval requirements and the specific settlement terms being considered. Class action settlements likewise often require court review, which can affect what information remains confidential.
Even when complete confidentiality is unavailable, employers may still be able to negotiate provisions addressing sensitive business information, proprietary data and certain settlement-related communications.
Get A Strong Legal Ally On Your Side Sooner Rather Than Later
If your company is facing a PAGA or class action lawsuit, time is of the essence to mount a strong defense. Start today with a free consultation. Call our office in Sacramento at 916-374-6581 or send us an email to set one up.