We Can Help Reduce PAGA Penalties
Navigating PAGA (Private Attorneys General Act) claims can be challenging for employers, but taking proactive steps can significantly reduce potential penalties. CABIA HR offers essential services such as periodic payroll audits, implementation of lawful written policies, and supervisor training to help limit your exposure to PAGA claims.
Employers can take advantage of two key scenarios where demonstrating compliance efforts can cap penalties:
Scenario 1: 15% Penalty Cap (Before Receiving a PAGA Notice or Request for Personnel Records)
If an employer can show they took “all reasonable steps” to comply with labor laws before either:
- Receiving a PAGA notice, or
- Receiving a request for personnel records under Section 226, 432, or 1198.5
Then, PAGA penalties are capped at 15%.
Scenario 2: 30% Penalty Cap (After Receiving a PAGA Notice – 60-Day Deadline)
If an employer takes “all reasonable steps” to comply with the law within 60 days of receiving a PAGA notice, the penalties are capped at 30%. Acting quickly after receiving a notice is crucial to reducing legal and financial exposure.
What Are ‘All Reasonable Steps’?
The term “all reasonable steps” includes, but is not limited to:
- Conducting periodic payroll audits and addressing any identified issues.
- Implementing and disseminating lawful written policies that comply with labor laws.
- Training supervisors on wage order compliance and labor regulations.
- Taking corrective action with supervisors when necessary to enforce compliance.
Dealing with PAGA Notices
If you have received a PAGA notice, CABIA HR can help. We provide expert guidance on the immediate steps you should take and work alongside your legal counsel to reduce potential penalties and costs.