On July 1, 2024, Governor Newsom signed two bills – SB 92 and AB 2288 – that changed PAGA (Labor Code section 2699) claims filed on or after June 19, 2024. Things will get messy for employment claims as PAGA has been on the books since 2004, but ultimately this is good news for employees when all is said and done. AND, it will hopefully deter bad actors from filing frivolous PAGA cases.
A few highlights from the new law:
- AB 2288 increases aggrieved employees’ share of penalties to 35% (previously 25%);
- AB 2288 increases penalties to $200 per pay period when an employer acts “maliciously, fraudulently, or oppressively” or the employer’s applicable policy or practice was previously found to be unlawful within the preceding 5 years. (Expect there to be litigation on what constitutes “malicious, fraudulent, or oppressive behavior” because this term is not defined;
- AB 2288 caps and/or prohibits penalties for certain violations, employers who take steps towards compliance (where applicable) or “isolated, non, recurring event[s]” (again – expect litigation on these new terms);
- SB 92 creates an option for small employers to cure violations upon receipt of the PAGA notice;
- SB 92 creates a mandatory early resolution process for larger employers;
- AB 2288 creates stricter standing and statute of limitation requirements;
- AB 2288 amends the statute to include manageability issues.
Read more here.