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California Labor Code Section 2699: Civil Penalties for PAGA Claims

Should an employee prevail against an employer on a lawsuit brought under the Private Attorney General Act (PAGA), civil penalties against the employer will be ordered. At a maximum, those are:

  • $100 per employee per pay period for a first violation
  • $200 per employee per pay period for a second violation

A sum equal to 75% of any such penalties must be paid to the California Labor and Workforce Development Agency, while 25% is paid to the employee.

Common Violations Under PAGA

California’s PAGA allows employees to take legal action against their employer for violations of the state’s Labor Code. While the Labor Code covers every workplace in California, there are more common forms of violations that come up from PAGA claims. These include:

  • Overtime violations 
  • Meal and rest break violations
  • Minimum wage violations
  • Failure to reimburse business expenses
  • Misclassification of employees

Any violation of these rights in the workplace can result in legal action by the employee. Usually, this occurs by filing a lawsuit, which allows the recovery of certain damages from the employer, like lost wages and costs relating to emotional distress. 

Penalties Under PAGA

  • Penalties for failure to provide meal and rest breaks – PAGA allows for penalties of up to one hour of pay at the employee’s regular rate of pay for each missed meal or rest break.

  • Penalties for failure to pay overtime – PAGA allows for penalties of up to one hour of pay at the employee’s regular rate of pay for each overtime hour worked.

  • Penalties for misclassification of employees – PAGA allows for penalties of up to $250 per employee per pay period for the initial violation and $1,000 per employee per pay period for subsequent violations.

Costs and Attorney’s Fees

As per subsection (g)(1) of California Labor Code Section 2699, any employee who prevails in any action shall be entitled to an award of reasonable attorney’s fees and costs . . . .” As the word “shall” is used, this provision appears to be mandatory rather than discretionary.

California labor law operates strongly in favor of employees. If you believe that you might have a case that can be brought under PAGA, contact our offices for a consultation with a quality employment law attorney from our offices. Your employer is entitled to its own attorney to represent it in your case. You’ll be in a far better position to prove your allegations against it when you’re represented by a PAGA attorney.

Contact our team of experienced PAGA lawyers to learn more.

Additional Resources