Spring is here—and for California employers, that means more than just a seasonal refresh. Now is the time to revisit your workplace policies and audit your labor practices to take full advantage of the new Private Attorneys General Act (PAGA) reforms that became effective in mid-2024. For employers who have not yet taken proactive steps, this is the perfect time to “spring clean” your handbooks, payroll practices, and employment contracts.
Why This Matters:
Under the reformed PAGA, employers who demonstrate good faith efforts to comply with California’s labor laws can now benefit from substantially reduced penalties—but only if they have the evidence to back it up.
Here are some of the most impactful changes:
Penalty Caps for Compliant Employers:
Employers who take all “reasonable steps” before receiving a PAGA notice can reduce penalties to just 15%. If steps are taken within 60 days after a notice, penalties may still be capped at 30%.
Defined Safe Harbors for Good Faith Compliance
“Reasonable steps” include policy audits, updated handbooks, supervisory training, and wage statement corrections—exactly the proactive steps we help employers take.
Reduced Penalties for Technical or Isolated Violations:
Wage statement violations can be reduced from $100 to $25 per pay period.
Isolated violations now carry $50 penalties instead of $100.
Employers paying weekly will no longer face double exposure—penalties are reduced by 50%.
No More Stacking of Penalties:
Employers will no longer face multiple penalties for overlapping violations based on the same conduct.
Why Act Now?
Courts and the Labor Commissioner’s office are now applying the new penalty structure to eligible claims, but only when employers can show that they took proactive, documented compliance steps.
We’re helping California employers take full advantage of these reforms through:
✔ Labor code compliance audits
✔ Handbook and wage statement reviews
✔ Updates to employment agreements
✔ Strategic documentation of good faith efforts
Make this spring the start of your compliance strategy. Let us help your business reduce exposure and gain peace of mind.
