PAGA Reformed — What to Expect
On June 27, 2024, the California Legislature passed significant reforms to the Private Attorneys General Act (PAGA), including new cure provisions that are particularly robust for alleged wage statement violations. These changes aim to provide employers with a clear path to rectify violations and avoid penalties, while ensuring that employees receive accurate and compliant wage statements.
Key Provisions:
Accurate Employer Information:
For violations related to accurately stating the employer’s name and address on a wage statement, the employer can cure the violation by providing written notice of the correct information to each affected employee.
Compliant Wage Statements:
For other violations of Labor Code § 226(a), the employer can cure the violation by issuing fully compliant wage statements to each affected employee for every pay period where a violation occurred, dating back three years from the notice.
No Penalty for Compliance:
If the employer cures the violations and takes “all reasonable steps” to comply with the law, no penalty will be imposed. This provision encourages employers to proactively address and correct any issues, ensuring compliance with wage statement requirements.
Impact on Employers and Employees:
These new cure provisions provide a balanced approach to addressing wage statement violations. Employers are given a clear and structured method to rectify issues without facing immediate penalties, while employees benefit from receiving accurate and compliant wage statements. This reform aims to reduce litigation and promote fair labor practices in California.
As these new provisions are applied in practice, it will be important to monitor their impact on both employers and employees. The goal is to create a more equitable and efficient system for addressing wage statement violations under PAGA.
Employers should update their policies and consult with legal counsel to ensure compliance with these new regulations.
Resources: Governor Newsom signs PAGA reform | Governor of California