California Labor Law

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What is PAGA?

California’s labor law enforcement agencies, including the Labor and Workforce Development Agency (“LWDA”) also known as the “Labor Board” has the authority to investigate whether employers violate the California Labor Code, and assess and collect civil penalties for any such violations.  However, due to purported budget cuts and cited lack of state resources to prosecute such actions, in 2004, the Legislature enacted the Private Attorneys General Act of 2004 (PAGA), Lab. Code, § 2698 et seq., to authorize an employee to bring an action for civil penalties on behalf of the state against his or her employer for Labor Code violations committed against the employee and fellow employees, with 75% of the proceeds of that litigation going to the state, and 25% to the employees.  A PAGA plaintiff therefore steps into the shoes of an attorney general to prosecute alleged Labor Code violations for civil penalties, on behalf of the state.  PAGA penalties can be astronomical.  Pursuant to PAGA, default civil penalties are $100 “for each aggrieved employee per pay period for the initial violation,” and $200 per aggrieved employer, per pay period, per “each subsequent violation.”…
Continue Reading California Court of Appeal Holds That Trial Courts Have Authority to Strike PAGA Claims For Being Unmanageable

On September 27, 2021, Governor Newsom signed AB 1003 into law. AB 1003 adds a new type of grand theft to Penal Code section 487m for an employer’s intentional theft of wages in an amount greater than $950 (from any one employee), or $2,350 (from two or more employees) in a 12-month period. Violations of this new law also carry a potential prison sentence of up to three years. AB 1003 further allows for the recovery of wages through a civil action.…
Continue Reading Legislative Update: Intentional Wage Theft Could Result in Criminal Liability

In this age of expensive class-action litigation, many California companies have found solace in their arbitration agreements. Under certain circumstances, the enforcement of such agreements includes the dismissal of class action claims. This has largely been made possible by the Federal Arbitration Act (FAA) which requires judges to enforce a wide range of written arbitration agreements notwithstanding contrary state law. California courts have a long history of delivering rulings that attempt to narrow the scope and effect of the FAA. As one of the latest examples, the California Court of Appeal for the Fifth District held that truck drivers who complete only intrastate deliveries are exempt from the FAA because their work was part of a “continuous stream of interstate travel.”…
Continue Reading Certain Delivery Drivers Are Exempt from the Federal Arbitration Act and May Proceed with Class Actions