HISTORY OF PAGA
Over a century ago, the Legislature responded to the problem of inadequate wages and poor working conditions by forming the Industrial Welfare Commission, giving it authority to investigate various industries and pass wage orders establishing minimum wages, maximum work hours, and conditions of labor.
California then passed the Private Attorneys General Act (PAGA) in 2004 to help the state uphold these protections for employees. PAGA plaintiffs are made up of current and former employees who collectively file a representative lawsuit against their employer.
Under PAGA, these plaintiffs can seek penalties from their employer for violations of any IWC Wage Order that regulates conditions of labor. If successful, a civil penalty is levied against the employer for each violation and the plaintiffs may be entitled to attorneys fees.
The purpose of PAGA is to incentivize employees to enforce compliance with the Labor Code and recover civil penalties on behalf of the State. While 75% of fees go to the State of California, 25% of the fees go to the aggrieved employees.
RECOVERY AVAILABLE
1. The availability and amount of penalties vary depending on the circumstances. Typically, civil penalties for certain Labor Code violations equal to $100 per aggrieved employee, per pay period for the initial violation. Subsequent violations are $200 per aggrieved employee, per pay period
2. Attorney’s fees could potentially be recovered during PAGA actions.