What Is PAGA In California And How Employees Use It To Hold Employers Accountable

California employees often face workplace violations that affect wages, breaks, leave rights, and basic fairness on the job. Many workers feel trapped when an employer treats penalties as “the cost of doing business.” Traditional lawsuits can take time, and individual claims may not feel large enough to justify legal action. California created an additional enforcement tool designed to increase accountability and deter repeated misconduct. That law is known as PAGA. Understanding how PAGA works can help employees evaluate options after workplace violations occur.

PAGA stands for the Private Attorneys General Act of 2004. It allows certain employees to pursue civil penalties on behalf of the State of California when an employer violates the Labor Code. Instead of relying only on state agencies to enforce labor laws, PAGA gives employees a path to bring claims that function like an enforcement action. These cases often focus on patterns of violations affecting multiple workers. PAGA has become one of the most powerful legal mechanisms in California employment law.

Understanding The Private Attorneys General Act (PAGA)

PAGA is codified at California Labor Code § 2698 through § 2699.8. The law authorizes an “aggrieved employee” to file a representative action to recover civil penalties for Labor Code violations. The civil penalties recovered are largely paid to the State of California, with a portion distributed to employees impacted by the violations.

Under Labor Code § 2699(a), an aggrieved employee may bring a civil action personally and on behalf of other current or former employees to recover civil penalties that otherwise would be assessed and collected by the Labor and Workforce Development Agency (LWDA).

PAGA matters because many Labor Code sections do not provide a direct penalty that an employee can sue for individually. PAGA can fill that gap by allowing penalties to be pursued even when the underlying Labor Code violation does not create a private right of action.

Who Qualifies As An “Aggrieved Employee” Under PAGA

PAGA applies only to an “aggrieved employee,” meaning a person who was employed by the alleged violator and suffered at least one Labor Code violation. That definition is found in Labor Code § 2699(c).

This requirement is important because PAGA does not allow lawsuits from individuals who merely suspect wrongdoing without being personally affected. The employee bringing the claim must have experienced at least one violation, even if many other employees were also impacted.

What Types Of Labor Code Violations Can Support A PAGA Claim

PAGA can be used to address a wide range of California employment law violations, including:

• Unpaid wages and failure to pay minimum wage.
• Meal and rest break violations.
• Failure to provide accurate wage statements.
• Waiting time penalties for late final paychecks.
• Unlawful deductions.
• Reimbursement violations.
• Failure to provide required paid sick leave under the Healthy Workplaces, Healthy Families Act.
• Leave-of-absence violations involving protected rights under the California Family Rights Act (CFRA), Government Code § 12945.2, enforced through the Fair Employment and Housing Act (FEHA), Government Code § 12940

While CFRA and FEHA claims are generally pursued through the civil rights enforcement process rather than through the Labor Code penalty framework, PAGA cases often involve overlapping facts, such as discipline, attendance points, or termination tied to protected leave or medical restrictions. When Labor Code violations occur alongside leave-related misconduct, PAGA can still be relevant depending on the exact violations and legal theories involved.

Why PAGA Cases Often Focus On Company-Wide Patterns

Many Labor Code violations are not isolated events. Employers frequently use standardized policies, payroll systems, scheduling software, and handbook rules that apply across an entire workforce. When a policy violates California law, it may affect dozens or hundreds of employees at the same time.

Examples include:

• Automatically deducting meal breaks regardless of whether breaks were taken.
• Using rounding practices that consistently reduce pay
• Applying an attendance policy that punishes protected sick leave usage
• Issuing wage statements with missing required information
• Requiring off-the-clock tasks such as opening procedures or closing duties

PAGA is designed to address these patterns because civil penalties can increase significantly when violations occur repeatedly and affect multiple workers.

How PAGA Penalties Work And Who Receives The Money

PAGA does not operate like a standard wage lawsuit. Instead of primarily recovering unpaid wages, PAGA focuses on civil penalties.

Under Labor Code § 2699(i), the general distribution rule is:

• 75% of civil penalties go to the LWDA (State of California)
• 25% of civil penalties go to the aggrieved employees

Attorneys’ fees and costs may also be recoverable, which is one reason PAGA can be a viable enforcement mechanism even when individual damages are modest.

PAGA penalties can be substantial because penalties may be assessed per employee, per pay period, depending on the underlying Labor Code section and the facts of the case.

The LWDA Notice Requirement And The PAGA Filing Process

PAGA requires administrative notice before a lawsuit can proceed. The aggrieved employee must provide notice to the LWDA and the employer describing the alleged Labor Code violations.

This requirement is set out in Labor Code § 2699.3. The notice must identify:

• The specific Labor Code provisions allegedly violated
• The facts and theories supporting the alleged violations

After notice is submitted, the LWDA may decide whether to investigate. If the LWDA does not investigate within the statutory timeframe, the employee may proceed with a civil action.

This step matters because mistakes in the notice process can delay or weaken a claim. Timing, legal framing, and factual specificity often influence whether a PAGA case can move forward efficiently.

How PAGA Relates To Leave Of Absence And Protected Time Off

Many California workplace disputes involve medical leave, disability-related leave, pregnancy-related time off, or family leave. These issues often overlap with wage and hour violations.

Common leave-of-absence scenarios that trigger broader violations include:

• Employees required to work while “off” on medical leave.
• Missed meal breaks due to understaffing after a return from leave.
• Improper payroll coding during leave that causes missed wages.
• Discipline based on absences protected by paid sick leave laws.
• Reduced hours or schedule changes after requesting leave.

Paid sick leave rights are protected by Labor Code § 246.5, which prohibits retaliation or discrimination for using lawful paid sick leave. When a company policy punishes sick leave use through attendance points or discipline, legal exposure may extend beyond a single claim and potentially affect many employees.

CFRA rights are protected through Government Code § 12945.2, and FEHA prohibits retaliation and discrimination under Government Code § 12940. While those claims often proceed outside PAGA’s Labor Code penalty framework, the same employer conduct may also involve Labor Code violations that can be pursued through PAGA.

Why Employers Fight PAGA Claims Aggressively

PAGA claims create serious exposure for employers because:

• Penalties can multiply across many employees and pay periods.
• The lawsuit can address multiple violations at once
• The claim may proceed even when arbitration agreements exist, depending on legal developments and claim structure.
• Attorneys’ fees can be awarded if the employee prevails.

Employers often respond by disputing whether violations occurred, whether the employee qualifies as “aggrieved,” or whether penalties should be reduced. Courts also have discretion to reduce penalties in certain circumstances when penalties would be unjust, arbitrary, or confiscatory, based on case law and equitable considerations.

Practical Examples Of PAGA Claims In The Workplace

PAGA claims frequently involve situations such as:

• A retail chain that issues wage statements missing the employer address information required.
• A restaurant group that fails to provide compliant meal breaks.
• A logistics company that refuses mileage reimbursement.
• A healthcare employer that uses an automatic meal deduction policy and does not track missed breaks properly.
• A company that delays final paychecks after termination..

These scenarios often affect large groups of employees, making PAGA a central enforcement strategy.

What Employees Should Document Before A PAGA Claim

A PAGA claim is only as strong as the evidence supporting it. Common documentation includes:

• Pay stubs and wage statements.
• Time records and scheduling screenshots.
• Handbooks, written policies, and onboarding documents.
• Text messages or emails about missed breaks or off-the-clock work.
• Leave requests and approvals when leave issues overlap.
• Written discipline or attendance warnings.

Proof often comes from patterns rather than a single event. Multiple pay periods of wage statements, timekeeping records, and policy documents can show systemic violations.

Call Law Office Of Joseph Richards, P.C. For A Free Consultation

PAGA claims can create powerful leverage against employers that violate California labor laws across multiple employees and pay periods. These cases often involve complicated penalty rules, strict notice requirements under Labor Code § 2699.3, and detailed analysis of payroll and workplace policies. When leave-of-absence issues overlap with wage and hour violations, legal exposure can expand quickly, especially when policies affect large groups of workers. 

Law Office of Joseph Richards, P.C. represents clients throughout California in employment matters involving leave-of-absence violations, retaliation concerns, wage and hour disputes, and related workplace claims. For a free consultation, contact the Orange County employment law attorney at Law Office of Joseph Richards, P.C. by calling (888) 883-6588 to receive your free consultation.