📋 PAGA Overview
The Private Attorneys General Act of 2004 (PAGA) is codified at California Labor Code Sections 2698-2699.8. It allows aggrieved employees to bring civil actions to recover penalties for Labor Code violations on behalf of themselves, other employees, and the State of California.
What Makes PAGA Powerful?
Representative Action
File on behalf of ALL aggrieved employees affected by the same violations - no class certification required unlike traditional class actions
Civil Penalties Per Violation
Penalties calculated per employee, per pay period, per violation type - amounts multiply quickly across a workforce
Cannot Be Waived
PAGA claims cannot be waived through arbitration agreements (Iskanian v. CLS Transportation; Adolph v. Uber)
Wide Coverage
Nearly any Labor Code violation can be pursued: wage/hour, meal/rest breaks, pay stubs, expense reimbursement, and more
PAGA Penalty Distribution (65%/35% Split)
Under Labor Code Section 2699(i), PAGA penalties are distributed as follows:
2024 PAGA Reform: Improved Employee Share
Effective July 1, 2024, AB 2288 reformed PAGA to increase the employee share from 25% to 65%. The state (LWDA) now receives only 35%. This significantly increases employee recovery in PAGA cases.
Who is an "Aggrieved Employee"?
An "aggrieved employee" is any person who was employed by the alleged violator and against whom one or more of the alleged violations was committed (LC 2699(c)). You must have personally experienced at least one violation to bring a PAGA claim, but can then represent all other employees affected by any violation committed by that employer.
⚖ Covered Violations and Penalty Amounts
PAGA covers nearly all Labor Code violations. Below are the most common violations with their specific penalty amounts. Penalties are assessed per employee, per pay period.
Wage Statement Violations (Labor Code 226)
Itemized Wage Statement Errors - LC 226
Penalty: $50 first violation, $100 subsequent per employee per pay period. Wage statements must include: gross/net wages, hours worked, pay rates, deductions, pay period dates, employee name/SSN last 4, employer name/address. Each missing or inaccurate item is a separate violation. Maximum individual cap: $4,000 per employee (but PAGA has no cap).
Meal Break Violations (Labor Code 226.7, 512)
Meal Period Violations - LC 226.7
Penalty: One hour of pay at regular rate for each workday a compliant meal period is not provided, PLUS $100/$200 PAGA penalty per employee per pay period. Employees must receive 30-minute duty-free meal periods for shifts over 5 hours, and a second meal period for shifts over 10 hours.
Rest Break Violations (Labor Code 226.7)
Rest Period Violations - LC 226.7
Penalty: One hour of pay at regular rate for each workday a rest period is not authorized and permitted, PLUS $100/$200 PAGA penalty per employee per pay period. Employees must receive 10-minute paid rest periods for every 4 hours worked (or major fraction thereof).
Minimum Wage Violations (Labor Code 1194)
Minimum Wage Violations - LC 1194, 1197
Penalty: $100 per employee per pay period for initial violations, $250 for subsequent violations (LC 1197.1). Plus unpaid wages and liquidated damages equal to the unpaid amount. California minimum wage is $16.00/hour (as of January 1, 2024), with higher rates in many localities.
Overtime Violations (Labor Code 510)
Overtime Pay Violations - LC 510, 558
Penalty: $50 per employee per pay period for initial violations, $100 for subsequent violations (LC 558). Plus unpaid overtime wages. Overtime is due at 1.5x for hours over 8/day or 40/week, and 2x for hours over 12/day or over 8 on the 7th consecutive day.
Final Paycheck Timing (Labor Code 201-203)
Final Pay Timing Violations - LC 201, 202, 203
Penalty: $100/$200 per employee per pay period (default PAGA penalty), PLUS waiting time penalties up to 30 days of wages (LC 203). Terminated employees must receive final pay immediately; employees who quit with 72+ hours notice are due pay on their last day; without notice, within 72 hours.
Expense Reimbursement (Labor Code 2802)
Business Expense Reimbursement - LC 2802
Penalty: $100/$200 per employee per pay period (default PAGA penalty). Employers must reimburse employees for all necessary business expenditures: personal cell phone use, vehicle mileage (IRS rate), home internet for remote work, tools, uniforms, and any expenses incurred in direct discharge of duties.
Default PAGA Penalty
When No Specific Penalty Exists
For Labor Code violations where no specific civil penalty is provided, Labor Code Section 2699(f) establishes the default PAGA penalty:
- $100 per employee per pay period for initial violations
- $200 per employee per pay period for subsequent violations
The first pay period with a violation is the "initial" violation; all subsequent pay periods are "subsequent" violations at the higher rate.
🖩 PAGA Penalty Calculator
Use this interactive calculator to estimate potential PAGA penalties. Enter the number of aggrieved employees, pay periods affected, and select the violation types to calculate estimated penalties.
Calculate Your PAGA Penalties
Penalty Calculation Results
Click any row for explanation
Important Calculator Notes
- This calculator provides estimates based on statutory penalty amounts
- Courts have discretion to reduce penalties under LC 2699(e)(2) if they would be "unjust, arbitrary and oppressive, or confiscatory"
- Penalties do NOT include underlying unpaid wages, meal/rest premium pay, waiting time penalties, or interest
- Attorney fees are recoverable in addition to penalties
- Actual recovery depends on many factors including proof of violations and court discretion
🕑 LWDA Notice Requirements
Before filing a PAGA lawsuit, you must provide written notice to both the Labor and Workforce Development Agency (LWDA) and your employer. This is a mandatory prerequisite under Labor Code Section 2699.3.
65-Day Waiting Period
What to Include in the LWDA Notice
Your notice must contain sufficient factual detail to put the employer on notice of the specific violations alleged:
- Specific Labor Code sections violated - List every section you intend to pursue
- Facts supporting each violation - Describe the employer's conduct that violates each section
- Theories of liability - Explain how the conduct violates the law
- Representative scope - State claims are brought on behalf of all aggrieved employees
- Your employment information - Position, dates of employment, workplace location
Notice Specificity Is Critical
After Viking River Cruises v. Moriana (2022) and Adolph v. Uber (2023), courts scrutinize PAGA notices carefully. A vague or incomplete notice may result in dismissal of claims not adequately described. Include specific facts about how and when violations occurred.
Cure Period for Certain Violations
Curable Within 33 Days
Pay stub violations (LC 226) - If employer provides compliant statements and pays one pay period wages to each affected employee
Posting violations - If employer posts required workplace notices
NOT Curable (Most Violations)
Meal period violations, rest break violations, overtime violations, minimum wage violations, final pay timing, expense reimbursement, record-keeping violations, and most other Labor Code violations cannot be cured.
LWDA Online Filing Portal
PAGA notices must be filed online at: dir.ca.gov/dlse/howtofilepaga.html
Filing fee: $75. After online submission, you must also send a copy to your employer by certified mail. Keep proof of both filings - courts require evidence that proper notice was given.
📝 Sample PAGA Notice Language
Use these templates as starting points for your LWDA notice and employer demand letter. Customize with your specific facts and violations.
Template for LWDA Notice
Notice is hereby given pursuant to California Labor Code Section 2699.3 that [EMPLOYEE NAME], an aggrieved employee, intends to bring a civil action pursuant to the Private Attorneys General Act of 2004 (Labor Code Sections 2698-2699.8) against [EMPLOYER NAME] for violations of the California Labor Code.
This notice is filed on behalf of [EMPLOYEE NAME] and all other current and former aggrieved employees of [EMPLOYER NAME] in California who have been subject to one or more of the Labor Code violations described herein during the period beginning one year prior to the filing of this notice through the present.
[EMPLOYEE NAME] was employed by [EMPLOYER NAME] as a [JOB TITLE] from approximately [START DATE] to [END DATE or "present"]. During the course of employment, [EMPLOYEE NAME] worked at [LOCATION(S)] and was paid on a [weekly/bi-weekly/semi-monthly] basis at a rate of approximately $[RATE] per [hour/week/month].
[EMPLOYEE NAME] is an "aggrieved employee" within the meaning of Labor Code Section 2699(c) because [he/she/they] was employed by [EMPLOYER NAME] and one or more of the alleged violations was committed against [him/her/them].
[EMPLOYER NAME] failed to provide [EMPLOYEE NAME] and other aggrieved employees with accurate, itemized wage statements as required by Labor Code Section 226(a). The wage statements issued by [EMPLOYER NAME] failed to accurately set forth one or more of the following required items:
[Select applicable items:]
- Gross wages earned
- Total hours worked (for non-exempt employees)
- All applicable hourly rates and the corresponding number of hours worked at each rate
- All deductions
- Net wages earned
- The inclusive dates of the period for which the employee is paid
- The name of the employee and the last four digits of social security number
- The name and address of the legal entity that is the employer
Specifically, [DESCRIBE SPECIFIC DEFICIENCIES, e.g., "the wage statements failed to show all hours worked because the employer did not record pre-shift and post-shift work time" or "the wage statements did not include all applicable hourly rates when employees worked overtime"].
Pursuant to Labor Code Section 226(e), aggrieved employees are entitled to penalties of $50 for the initial pay period violation and $100 for each subsequent violation, per employee, per pay period.
[EMPLOYER NAME] failed to provide [EMPLOYEE NAME] and other aggrieved employees with legally compliant meal periods as required by Labor Code Sections 226.7 and 512.
Specifically, [EMPLOYER NAME] [select applicable violations:]
- Failed to provide any meal period during shifts exceeding five hours
- Provided late meal periods (after the fifth hour of work)
- Required employees to remain on premises or on-call during meal periods
- Required on-duty meal periods without valid written agreements
- Automatically deducted meal period time regardless of whether compliant breaks were actually taken
- Failed to provide a second meal period for shifts exceeding ten hours
[DESCRIBE SPECIFIC FACTS, e.g., "Employees were regularly required to work through their meal periods to meet production demands" or "The employer's policy required employees to remain in the building during meal breaks and be available to assist customers"].
[EMPLOYER NAME] further failed to pay aggrieved employees one additional hour of pay at the regular rate of compensation for each workday a compliant meal period was not provided, as required by Labor Code Section 226.7(c).
Pursuant to Labor Code Section 2699(f), aggrieved employees are entitled to civil penalties of $100 for the initial violation and $200 for each subsequent violation, per employee, per pay period.
[EMPLOYER NAME] failed to authorize and permit [EMPLOYEE NAME] and other aggrieved employees to take paid rest periods as required by Labor Code Section 226.7 and the applicable Industrial Welfare Commission Wage Order.
Under California law, employees are entitled to a paid 10-minute rest period for every four hours worked, or major fraction thereof. Rest periods should be in the middle of each work period insofar as practicable.
[EMPLOYER NAME] [select applicable violations:]
- Did not authorize or permit rest breaks
- Scheduled insufficient rest breaks for hours worked
- Required employees to work through rest breaks due to understaffing
- Required employees to remain on-call or on premises during rest periods
- Did not relieve employees of all duties during rest periods
[DESCRIBE SPECIFIC FACTS].
[EMPLOYER NAME] failed to pay one additional hour of pay at the regular rate for each workday a rest period was not provided, as required by Labor Code Section 226.7(c).
Pursuant to Labor Code Section 2699(f), aggrieved employees are entitled to civil penalties of $100 for the initial violation and $200 for each subsequent violation, per employee, per pay period.
Template for Employer Demand Letter
[Your Address]
[City, CA ZIP]
[Your Email]
[Your Phone]
[DATE]
VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [employer email]
[EMPLOYER/COMPANY NAME]
Attn: [Owner/CEO/HR Director/Legal Department]
[Company Address]
[City, CA ZIP]
Re: PAGA Notice and Demand for Settlement - Labor Code Violations
Dear [RECIPIENT NAME]:
Please be advised that I have today filed a notice with the Labor and Workforce Development Agency ("LWDA") pursuant to the Private Attorneys General Act of 2004 (Labor Code Sections 2698-2699.8) regarding multiple Labor Code violations committed by [EMPLOYER NAME]. A copy of the LWDA notice is enclosed for your reference.
VIOLATIONS ALLEGED
The LWDA notice identifies violations of the following Labor Code sections:
[List violations, e.g.:]
- Labor Code Section 226 (itemized wage statements)
- Labor Code Sections 226.7 and 512 (meal periods)
- Labor Code Section 226.7 (rest periods)
- Labor Code Sections 510 and 558 (overtime)
- Labor Code Section 2802 (expense reimbursement)
ESTIMATED PAGA PENALTIES
Based on information and belief, [EMPLOYER NAME] employs approximately [NUMBER] non-exempt employees who have been subject to these violations over the past year ([NUMBER] pay periods). Applying the statutory penalty rates, estimated PAGA penalties are:
[Include penalty breakdown]
TOTAL ESTIMATED PAGA PENALTIES: $[AMOUNT]
Employee Share (65%): $[AMOUNT]
LWDA Share (35%): $[AMOUNT]
These penalties are in addition to unpaid wages, meal and rest break premiums, waiting time penalties, interest, and attorney fees that may be recovered.
SETTLEMENT DEMAND
To avoid the expense and uncertainty of litigation, my client is willing to resolve all claims for a total settlement payment of $[SETTLEMENT AMOUNT], to be paid within [30] days. This settlement would release all PAGA claims and underlying wage claims on behalf of all aggrieved employees.
If we do not reach a settlement within the 65-day notice period, I will file a PAGA complaint in [County] County Superior Court and vigorously pursue all available remedies.
Please contact me at [EMAIL/PHONE] to discuss settlement.
Sincerely,
_________________________
[YOUR NAME]
Enclosures:
- LWDA Notice (filed [DATE])
- Penalty Calculation Worksheet
📅 Statute of Limitations
Understanding the time limits for PAGA claims is critical. Missing the deadline means losing your right to pursue penalties.
PAGA Statute of Limitations: 1 Year
Under Labor Code Section 2699.3(d), a PAGA claim must be filed (LWDA notice submitted) within one (1) year from the date of the most recent alleged violation. This is shorter than the 3-4 year limitations period for underlying wage claims.
Key Points About PAGA Timing
1 Year from Most Recent Violation
The clock runs from the date of the last violation, not your termination date. Ongoing violations extend the limitations period.
Continuous Accrual for Ongoing Violations
Each pay period with a violation is a new violation. As long as violations continue, the 1-year window keeps moving forward.
Look-Back Period
Once you file a timely LWDA notice, you can seek penalties for violations going back 1 year from the notice date, even if you were employed longer.
Tolling During LWDA Period
The statute of limitations is tolled (paused) during the 65-day LWDA notice period while you wait to file suit.
Comparison with Underlying Wage Claims
| Claim Type | Statute of Limitations | Legal Basis |
|---|---|---|
| PAGA Penalties | 1 year | LC 2699.3(d) |
| Unpaid Wages (Oral Agreement) | 3 years | CCP 338(a) |
| Unpaid Wages (Written Contract) | 4 years | CCP 337 |
| Meal/Rest Break Premiums | 3 years | CCP 338(a) |
| Wage Statement Penalties (LC 226) | 1 year | LC 226(e) |
| Waiting Time Penalties (LC 203) | 3 years | CCP 338(a) |
Strategic Timing Tip
Because PAGA has a shorter 1-year limitations period while underlying wage claims have 3-4 years, it is often strategic to file the PAGA notice as soon as violations are discovered to preserve the maximum penalty period, even if you continue to gather evidence for the underlying wage claims.
📂 Evidence Checklist
Gather these documents to support your PAGA claim. Strong documentation is essential for calculating penalties and proving violations.
📄 Pay Stubs
- ✓ All pay stubs for violation period
- ✓ Final pay stub showing separation
- ✓ Pay stubs showing missing information
- ✓ Year-end W-2 forms for comparison
🕑 Time Records
- ✓ Time clock records or punch data
- ✓ Work schedules showing shifts
- ✓ Meal break sign-out/sign-in sheets
- ✓ Personal time log (if employer records incomplete)
📋 Company Policies
- ✓ Employee handbook
- ✓ Meal and rest break policy
- ✓ Timekeeping/attendance policy
- ✓ Expense reimbursement policy
👥 Employee Declarations
- ✓ Your own written declaration
- ✓ Declarations from coworkers
- ✓ Contact info for other aggrieved employees
- ✓ Estimate of total employees affected
Request Your Records Now
Under California law, you have the right to request copies of your employment records:
- Labor Code 226(c): Payroll records - employer must provide within 21 days of written request
- Labor Code 1198.5: Personnel file - employer must provide access within 30 days
Send written requests immediately to preserve evidence and create documentation of employer compliance (or non-compliance).
Evidence You Can Gather
Even if your employer did not keep good records, you can create evidence:
- Write a detailed timeline of your employment from memory
- Note typical work schedules, break patterns, and violations
- Save any text messages or emails about work hours or missed breaks
- Identify coworkers who experienced the same violations
- Calculate the number of other employees in similar positions
🚀 Next Steps
Ready to pursue your PAGA claim? Follow these steps to maximize your recovery.
Step-by-Step Process
Step 1: Gather Evidence
Collect pay stubs, time records, policies, and contact information for other affected employees. Request records under LC 226(c) and 1198.5.
Step 2: Calculate Penalties
Use the calculator above to estimate potential PAGA penalties based on violations, employees, and pay periods affected.
Step 3: Draft LWDA Notice
Prepare a detailed notice identifying all Labor Code violations with supporting facts. This is a critical document that defines your claims.
Step 4: File with LWDA
Submit notice online at dir.ca.gov/dlse/howtofilepaga.html. Pay $75 fee. Same day, send copy to employer by certified mail.
Step 5: Wait 65 Days
Mandatory waiting period. Use this time to continue gathering evidence, identify additional aggrieved employees, and attempt settlement.
Step 6: File Lawsuit or Settle
After 65 days, file PAGA complaint in Superior Court if not settled. Alternatively, negotiate settlement during notice period.
Need Help With Your PAGA Claim?
I draft professional PAGA notices and demand letters for employees pursuing Labor Code violations. Schedule a consultation to discuss your case.
Book Consultation - $240/hrConsultation Rate
$240 per hour for case evaluation, strategy discussion, and hourly legal work.
LWDA Notice Drafting
$575 flat fee for professional PAGA notice drafting with all required elements and California statute citations.
California Resources
- LWDA PAGA Filing Portal: dir.ca.gov/dlse/howtofilepaga.html
- Labor Commissioner (DLSE): dir.ca.gov/dlse - Wage claim information
- Industrial Welfare Commission Wage Orders: dir.ca.gov/iwc - Industry-specific requirements
- California Legislative Information: leginfo.legislature.ca.gov - Full Labor Code text
- DLSE Enforcement Manual: dir.ca.gov/dlse/dlse-publications - Enforcement policies
Contact Information
Email: owner@terms.law
Book Online: calendly.com/sergei-tokmakov/30-minute-zoom-meeting
👥 When to Hire a PAGA Attorney
PAGA claims are complex representative actions that almost always benefit from attorney involvement. Here's what to consider.
Handle It Yourself When:
✓ LWDA Notice Only
You want to send the required LWDA notice to preserve your rights while you find an attorney.
✓ Individual Claim First
You want to pursue your individual wage claim through DLSE or small claims before considering PAGA.
✓ Information Gathering
You're researching whether PAGA applies to your situation before consulting an attorney.
Hire an Attorney When:
⚠ Filing the PAGA Lawsuit
PAGA lawsuits require navigating complex procedural requirements, standing issues, and court filings.
⚠ Multiple Violations
Stacking violations (meal breaks, rest breaks, wage statements, etc.) maximizes PAGA penalties but requires expert analysis.
⚠ Large Workforce
The more "aggrieved employees," the larger the penalty pool - attorneys know how to calculate and negotiate these.
⚠ Employer Has Counsel
Companies always have attorneys defending PAGA claims - you need equal representation.
⚠ Manageability Issues
Post-2024 reforms allow employers to challenge "manageability" - defeating these arguments requires litigation experience.
⚠ Settlement Negotiations
PAGA settlements require court approval and LWDA notification - attorneys handle these procedural requirements.
Benefits of Attorney Representation
- Contingency fees: PAGA attorneys work on contingency - you pay nothing upfront
- Fee recovery: PAGA allows recovery of attorney fees from the employer
- Penalty calculation: Attorneys properly calculate per-pay-period, per-employee penalties
- Notice drafting: Precise LWDA notice language affects your entire case
- Litigation experience: PAGA has unique procedural requirements
- Settlement expertise: Negotiate optimal settlements and navigate court approval
Not Sure If You Need an Attorney?
Take our free assessment to get a personalized recommendation based on your PAGA situation.
Take Free AssessmentPAGA Claims Almost Always Need Attorneys
Unlike individual wage claims that can be pursued through DLSE or small claims, PAGA representative actions are complex litigation matters. The 2024 PAGA reforms added new procedural requirements. Most PAGA plaintiffs work with experienced employment attorneys from the start.