California employers have a compelling reason to review their employment practices before year-end: proactive compliance can help prevent violations and provide substantial protection if a PAGA claim arises.
Under California’s reformed Private Attorneys General Act (PAGA), qualifying employers that take all reasonable steps to comply with the law before receiving a PAGA notice, or certain employee records requests, can limit covered PAGA civil penalties to 15% of the amount otherwise sought—an 85% reduction.