Table Of Contents

PREFACE

CHAPTER 1          THE PRIVATE ATTORNEYS GENERAL ACT OF 2004

1.1                The Context In Which PAGA Was Enacted And Its Impact

1.2                PAGA’s Focus On Enforcement

1.3                PAGA Creates New Remedies Without Creating New Substantive Rules

1.4                The Reduced Role Of State Enforcement Agencies

1.5                PAGA’s Enforcement System

1.6                The Relevance Of California’s Class Action Requirements

1.7                Abbreviations Used In The Manual

1.8                Other Important Resources

CHAPTER 2          OVERVIEW OF PAGA

2.1                The Use Of Civil Actions To Enforce California’s Wage And Hour Laws

2.2                Law Enforcement Actions Under PAGA

2.3                Section 558 Claims Against Employers And Individuals

2.4                Minimum Wage Claims Against Employers And Individuals Under Section 1197.1

2.5                Labor Code Section 1198’s Pathway To Wage Order Enforcement

2.6                Varied Motivations For PAGA Actions

2.7                PAGA Establishes A Punishment System While Trivializing The Critical Need For Education And Information

2.8                The Statutory Structure Of PAGA

2.9                The Enactment Of PAGA And Its Amendments

2.10              Key Definitions And Rules In PAGA

2.11              Construction Employees Covered By CBAs Are Excluded From PAGA

2.12              Posting, Notice, Reporting And Filing Violations

2.13              PAGA’s Cure Provisions

2.14              PAGA Statistics

CHAPTER 3          PAGA’S EXHAUSTION, ADMINISTRATIVE AND PROCEDURAL STANDARDS

3.1                Obligations To Provide Proper Notice And Exhaust Administrative Remedies

3.2                The Categories Of Violations Identified In PAGA

3.3                Claims Based On Specified Statutes – Category 1 Statutes

3.4                Claims Based On Other Labor Code Provisions – Category 2 Statutes

3.5                Claims Based On Occupational Safety Violations

3.6                Scope Of Claims That An Aggrieved Employee Can Pursue

CHAPTER 4           REPRESENTATIVE ENFORCEMENT ACTIONS AND CLASS ACTIONS

4.1                Class Action Requirements

4.2                Distinctions Between Class Actions And PAGA Actions

4.3                The Basic Class Action Standards In The CCP

CHAPTER 5          THE CALIFORNIA SUPREME COURT’S VIEW OF PAGA

5.1                The California Supreme Court’s Perspective On PAGA

5.2                Arias v. Superior Court:  The Inapplicability Of Class Action Standards To PAGA Actions And The Effect Of PAGA Judgments

5.3                Amalgamated Transit Union, Local 1756, AFL-CIO v. Superior Court: A Labor Union Cannot Bring A PAGA Action

5.4                Iskanian v. CLS Transportation Los Angeles, LLC:  The Effect Of The FAA And Class Action Waivers

5.5                Williams v. Superior Court:  Discovery Rights In PAGA Actions

5.6                Mendoza v. Nordstrom, Inc.:  PAGA Authorizes A Representative Action Without The Need For Class Certification

5.7                ZB, N.A. v. Superior Court:  Employees Can Pursue Civil Penalties Through PAGA, But Not Unpaid Wages

CHAPTER 6          ITEMIZED WAGE STATEMENT AND PAGA CLAIMS

6.1                California’s Overlapping Wage Statement And PAGA Rules

6.2                Injunctive Relief

6.3                Payroll Companies

6.4                Government Employer Exemption

6.5                Residential Worker Exemption

6.6                Right to Inspect Or Receive A Copy Of Pay Records

6.7                Relationship With Unfair Competition Claims

6.8                PAGA’s Applicability To Pay Stub Violations

6.9                The Overlapping Regulation Of Wage Statements Under PAGA And Labor Code Section 226

CHAPTER 7          ARBITRATION OF PAGA CLAIMS

7.1                A Waiver Of The Right To Bring A PAGA Claim In Any Forum Cannot Be Enforced

7.2                PAGA Claims Cannot Be Arbitrated Absent The State’s Consent

CHAPTER 8          LITIGATION CONSIDERATIONS

8.1                Removal And The Class Action Fairness Act

8.2                The Complexity Of PAGA Actions

8.3                PAGA Discovery – Obtaining Aggrieved Employee Contact Information

8.4                The Need For An Adequate Trial Plan

8.5                Some PAGA Actions Are Unmanageable

8.6                Roles Of Judge vs. Jury

8.7                Bifurcation Of Trials

8.8                Court’s Role In PAGA Penalty Awards

8.9                Establishing A Right To PAGA Penalty Recoveries

8.10              Burden of Proof

8.11              Claims That May Be Brought Under PAGA

CHAPTER 9          REMEDIES

9.1                Penalties Recoverable Under PAGA

9.2                Recovery Of Penalties vs. Victim-Specific Relief

9.3                Courts Have Discretion To Award Lesser Penalties

9.4                Injunctive Relief

9.5                The Effect Of A PAGA Judgment

9.6                The Scope Of PAGA Judgments

CHAPTER 10        DEFENSES IN PAGA LITIGATION

10.1              Failure To Exhaust

10.2              Statutes Of Limitations

10.3              Lack Of Standing And Lack Of Violation

10.4              Other Defenses

CHAPTER 11        SETTLEMENT OF LABOR CODE AND PAGA CLAIMS

11.1              PAGA’s Statutory Framework On Settlement

11.2              Factors Courts Consider When Reviewing PAGA Settlements

11.3              The Res Judicata Impact Of A PAGA Settlement

11.4              Where The Named Plaintiff Has Settled On An Individual Basis

11.5              Using Individual Settlements With Employees To Resolve Claims

CHAPTER 12        APPEALS

12.1              Appeals In PAGA Actions

12.2              The Death Knell Doctrine Does Not Apply Where A Representative PAGA Claim Remains Pending In The Lawsuit After Class Certification Is Denied

12.3              Even If The Death Knell Doctrine Does Not Apply, A Reviewing Court Has The Discretion To Consider The Merits Of A Premature Appeal By Treating It As A Writ

12.4              A Defendant May Not Appeal An Adverse PAGA Ruling Until A Final Judgment In The Case Is Issued

12.5              PAGA Claims Are Subject To An Automatic Bankruptcy Stay

12.6              The LWDA’s Decision On A Cure Dispute May Be Appealed To The Appellate Division Of The Superior Court

CHAPTER 13        COMPLIANCE AUDITS

13.1              The Legislature’s Emphasis On Compliance

13.2              The Importance Of Self Audits

13.3              Audit Process And Subjects

13.4              Need For Legal Counsel

CHAPTER 14        LABOR CODE CHECKLISTS AND SUMMARIES

14.1              The Pursuit Of Penalties Under The PAGA

14.2              Labor Code Checklist

14.3              High Risk Areas

CHAPTER 15        ADDITIONAL TARGET AREAS FOR AUDITS

CHAPTER 16        LEAVES OF ABSENCE AND TIME OFF RIGHTS

16.1              Overview

16.2              Audit Issues

16.3              Additional Resources

CHAPTER 17        POSTING AND NOTIFICATION OBLIGATIONS

APPENDIX A        THE LABOR CODE PRIVATE ATTORNEYS GENERAL ACT OF 2004 Labor Code §§ 2698 – 2699.6

APPENDIX B        SB 796 — THE PRIVATE ATTORNEYS GENERAL ACT OF 2004 (Signed October 12, 2003)

APPENDIX C        SENATE RULES COMMITTEE REPORT ON SB 796 (September 11, 2003)

APPENDIX D        ASSEMBLY FLOOR ANALYSIS OF SB 796 (September 2, 2003)

APPENDIX E        SB 899 (Signed April 19, 2004)

APPENDIX F        SB 1809 (Signed August 11, 2004, As An Urgency Statute)

APPENDIX G        ASSEMBLY FLOOR ANALYSIS OF SB 1809 (July 29, 2004)

APPENDIX H        SENATE RULES COMMITTEE REPORT ON SB 1809 (July 29, 2004)

APPENDIX I         SB 940 (Effective January 1, 2009)

APPENDIX J         AB 1506 (Effective October 2, 2015)

APPENDIX K        SB 836 (Effective January 1, 2016)

APPENDIX L        AB 235 (Stats. 2018, Ch. 704518) (Effective September 22, 2018)

APPENDIX M       AB 1654 (Effective January 1, 2019)

APPENDIX N        FORMS OF LABOR & WORKFORCE DEVELOPMENT AGENCY

APPENDIX O        LOS ANGELES COUNTY SUPERIOR COURT FORM CREATED TO EVALUATE CLASS ACTION SETTLEMENTS

APPENDIX P        LOS ANGELES COUNTY SUPERIOR COURT CLASS ACTION CASE MANAGEMENT ORDER

APPENDIX Q        LABOR CODE INDEX

APPENDIX R        CASE TABLE

SUBJECT INDEX