California Employment Law: California Supreme Court Makes it Easier for Employees to Bring PAGA Lawsuits
In the recent California Supreme Court case, Arias v. Superior Court S155965, __ Cal. 4th __ (2009), the Court determined that an employee suing an employer for labor law violations on behalf of himself and others seeking civil penalties under the Private Attorneys General Act (“PAGA”) is not obligated to meet the requirements for class actions in California. In the same ruling, the Court did determine that an employee pursuing the same claim under the Unfair Competition Law (“UCL”) would have to bring the representative claims as a class action. This ruling expands the power of lawsuits brought by employees and will likely increase liability exposure for employers across the state of California.
PAGA, codified in CA Labor Code section 2698, et seq., allows a private citizen to pursue civil penalties on behalf of the State of California Labor Workforce Development Agency (“LWDA”) provided the formal notice and waiting procedures of the law are followed. The aggrieved employee is allowed to seek civil penalties not only for violations that he/she personally suffered but also for violations of “other current or former employees.” Pursuant to section 2699(i), any resulting civil penalties are split between the LWDA and the employee with the LWDA receiving 75% of the penalties and the employee receiving 25%. The civil penalty can range from $50 – $200 per violation/per pay period/per employee. Therefore, such civil penalties can add up very quickly. In addition, employees pursuing PAGA claims are entitled to reimbursement of attorneys’ fees. The Arias case will provide employees with substantial support as they take on the unlawful practices of their employers across the state.
For more information about California employment law, including but not limited to wage and hour disputes, overtime compensation, commission payments, failure to reimburse expenses or wrongful termination, please contact Richardson “Red” Griswold at (858) 481-1300 or rgriswold@griswoldlawsandiego.com.
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