California Paga Notice Demand (Employment) — Demand Letter

📋 What is a PAGA Claim?

The Private Attorneys General Act (PAGA), codified at California Labor Code Sections 2699-2699.8, allows aggrieved employees to sue employers on behalf of themselves and other employees for Labor Code violations. PAGA essentially deputizes private citizens to enforce California labor laws and collect civil penalties that would otherwise go to the state.

When to Use This Guide

Use this guide if your employer has violated California Labor Code provisions such as:

💰 Wage & Hour Violations

Unpaid wages, overtime violations, minimum wage violations, missed meal and rest breaks

📄 Wage Statement Violations

Inaccurate pay stubs, missing information required by Labor Code 226

📅 Final Pay Violations

Failure to timely pay final wages upon termination under Labor Code 201-203

📝 Recordkeeping Violations

Failure to maintain accurate time records, pay records, or personnel files

👍 Why PAGA Claims Are Powerful

No class certification required - PAGA is a representative action, not a class action
Penalties per pay period per employee - Damages can be substantial for systemic violations
Attorney fees recoverable - Prevailing plaintiffs recover reasonable attorney fees
Cannot be waived - Arbitration agreements cannot fully waive PAGA claims
Stacks with individual claims - You can pursue both PAGA penalties and individual damages

PAGA Notice Requirements

📩 LWDA Notice Requirement

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Before filing a PAGA lawsuit, you must provide written notice to both the employer and the California Labor and Workforce Development Agency (LWDA) identifying the specific Labor Code violations. The notice must be filed online through the LWDA's PAGA website at dir.ca.gov/Private-Attorneys-General-Act/Private-Attorneys-General-Act.html.

🕑 65-Day Waiting Period

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After filing the LWDA notice, you must wait 65 calendar days before filing suit. During this period, the LWDA may investigate and may notify you that it intends to investigate. If the LWDA decides not to investigate or fails to respond within 65 days, you may proceed with your lawsuit.

📝 Notice Content Requirements

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The PAGA notice must include: (1) the specific Labor Code provisions violated, (2) facts and theories supporting the alleged violations, and (3) information about the aggrieved employee. Vague or conclusory allegations may result in procedural challenges to your claim.

💰 Cure Provisions

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For certain violations (primarily wage statement issues under Labor Code 226), employers have a 33-day cure period. If the employer cures the violation and pays a small penalty, the PAGA claim for those violations may be barred. However, most substantive wage violations cannot be cured.

⚠ 2024 PAGA Reforms

AB 2288 and SB 92 (effective July 2024) significantly reformed PAGA. Key changes include: reduced penalties for small employers, standing requirements, penalty caps for good-faith efforts, and new cure provisions. Consult current law before filing as these reforms may affect your claim.

⚖ Legal Basis

PAGA claims are governed by specific Labor Code provisions and case law. Understanding these authorities is essential for effective enforcement.

Key California Statutes

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California Labor Code Section 2699

The core PAGA statute authorizing employees to bring civil actions for Labor Code violations. Establishes the penalty structure: $100 per employee per pay period for initial violations, $200 for subsequent violations. 75% of penalties go to the LWDA; 25% to aggrieved employees.

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California Labor Code Section 2699.3

Establishes the administrative exhaustion requirements: written notice to LWDA and employer, 65-day waiting period, and cure provisions for certain violations. Failure to comply with these procedures bars the PAGA lawsuit.

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California Labor Code Section 2699.5

Lists the Labor Code provisions that are subject to PAGA enforcement. Includes most wage and hour provisions, safety requirements, and employment standards. Some provisions have specific penalty amounts while others use the default PAGA penalties.

📖

Iskanian v. CLS Transportation (2014)

California Supreme Court held that PAGA claims cannot be waived through arbitration agreements because the state is the real party in interest. However, Viking River Cruises (2022) allows individual PAGA claims to be compelled to arbitration.

Common Labor Code Violations Enforced via PAGA

🕑 LC 510, 1194 - Overtime

Failure to pay 1.5x for hours over 8/day or 40/week, 2x for hours over 12/day

🍴 LC 226.7, 512 - Meal Breaks

Failure to provide 30-minute duty-free meal periods for shifts over 5 hours

🔄 LC 226.7 - Rest Breaks

Failure to provide 10-minute paid rest periods per 4 hours worked

📄 LC 226 - Wage Statements

Inaccurate or incomplete itemized wage statements each pay period

💰 LC 201-203 - Final Pay

Failure to pay all wages immediately upon discharge or within 72 hours of resignation

📝 LC 1174, 1197.5 - Records

Failure to maintain accurate time records and pay equity documentation

Standing Requirements

Aggrieved employee - You must be or have been employed by the employer and suffered at least one Labor Code violation
Current or former employee - You need not be currently employed to bring a PAGA claim
Representative capacity - You sue on behalf of yourself and all other current and former aggrieved employees
One-year statute of limitations - PAGA claims must be filed within one year of the most recent violation

💡 PAGA vs. Class Actions

Unlike class actions, PAGA claims do not require class certification, numerosity, commonality, or typicality. The employee acts as a proxy for the state, and all aggrieved employees are automatically covered. However, PAGA recovers penalties, not individual damages - you may need a separate claim for unpaid wages.

✅ Evidence Checklist

Gather these documents before filing your PAGA notice. Click to check off items as you collect them.

📄 Pay Records

✓ Pay stubs for entire employment period
✓ Time records showing hours worked
✓ Evidence of missed meal/rest periods
✓ Final paycheck documentation

📩 Employment Documents

✓ Offer letter and employment agreement
✓ Employee handbook and policies
✓ Arbitration agreement (if any)
✓ Termination documentation

👥 Witness Information

✓ Names of coworkers with similar violations
✓ Contact information for potential witnesses
✓ Documentation of workplace policies

📈 Employer Information

✓ Employer's legal name and address
✓ Names of supervisors and HR contacts
✓ Estimated number of employees affected
✓ Duration of violations (start/end dates)

🔒 Request Your Personnel File

Under Labor Code Section 1198.5, you have the right to inspect your personnel file within 30 days of a written request. Under Labor Code Section 226(b), you can obtain copies of your time records. Request these immediately to document violations.

💰 Calculate Your Damages

PAGA penalties can be substantial when multiplied across employees and pay periods. Remember: you keep 25% of penalties; 75% goes to the state.

Violation Type	Penalty Structure
Default PAGA Penalty (LC 2699)	$100/employee/pay period (initial); $200 (subsequent)
Wage Statement Violations (LC 226.3)	$50/employee/pay period (initial); $100 (subsequent)
Meal/Rest Break (LC 226.7)	One hour of pay per violation (individual claim) + PAGA penalty
Waiting Time Penalties (LC 203)	Up to 30 days' wages (individual claim) + PAGA penalty
Employee's Share	25% of all PAGA penalties recovered
Attorney Fees	Reasonable fees recoverable by prevailing employee

💰 Stacking Violations

Multiple violations can occur in a single pay period. For example, an employer who fails to provide meal breaks, rest breaks, and accurate wage statements creates three separate violations per pay period, each subject to PAGA penalties.

⚖️ PAGA Penalty Calculator

Open Full Calculator →

Select Violation Types ?

📄 Paystub Violations 🍽️ Meal Break ☕ Rest Break ⏰ Overtime 💵 Minimum Wage 📋 Final Wage

Number of Aggrieved Employees ?

50

1 500

Pay Periods (PAGA Period) ?

24

1 78 (1.5 yrs)

Penalty Rate ?

$100 (Initial) Mixed ($150 avg) $200 (Subsequent)

📊 Estimated Penalties

Gross PAGA Penalties ▼ $180,000

Calculation: 50 employees × 24 pay periods × $150 avg × 1 violation type = $180,000

75% of PAGA penalties go to the Labor and Workforce Development Agency to fund labor law enforcement.

25% is distributed to aggrieved employees. This is in addition to any individual wage claims you may have.

Your Share (if 1 of 50 employees) $900

💡 Smart Insights

📈 With 50 employees over 24 pay periods, this represents a significant exposure for the employer.
⚖️ Adding more violation types can substantially increase total penalties - each type stacks.
💰 Remember: You can also pursue individual damages (unpaid wages, waiting time penalties) alongside PAGA.

💡 Court Discretion to Reduce Penalties

Under Labor Code 2699(e)(2), courts have discretion to reduce PAGA penalties if the full amount would be "unjust, arbitrary and oppressive, or confiscatory." The 2024 reforms increased judicial discretion, particularly for employers who made good-faith compliance efforts.

📝 Sample Language

Copy and customize these paragraphs for your PAGA notice letter to the employer (sent concurrently with LWDA filing).

Opening Paragraph

This letter constitutes written notice pursuant to California Labor Code Section 2699.3 of [YOUR NAME]'s intent to pursue a civil action against [EMPLOYER NAME] under the Private Attorneys General Act of 2004 (Labor Code Sections 2698-2699.8). A copy of this notice has been filed with the California Labor and Workforce Development Agency (LWDA) as required by law.

Meal Break Violation

[EMPLOYER NAME] violated Labor Code Sections 226.7 and 512 by failing to provide legally compliant meal periods. Specifically, employees were: (1) required to work through meal periods without compensation; (2) not relieved of all duty during meal breaks; (3) required to remain on premises during meal periods; and/or (4) not provided meal periods before the end of the fifth hour of work. These violations occurred on an ongoing basis from [START DATE] to [END DATE].

Wage Statement Violation

[EMPLOYER NAME] violated Labor Code Section 226 by providing inaccurate and incomplete itemized wage statements. The wage statements failed to include: [LIST MISSING ITEMS: gross wages, total hours, piece rate (if applicable), all deductions, net wages, pay period dates, employee name, last four digits of SSN, employer name and address, all applicable hourly rates and hours worked at each rate]. These violations affected the undersigned employee and other aggrieved employees throughout the relevant period.

Overtime Violation

[EMPLOYER NAME] violated Labor Code Sections 510 and 1194 by failing to pay proper overtime compensation. Employees regularly worked more than [8 hours per day/40 hours per week] without receiving overtime pay at 1.5 times the regular rate for hours over 8/day and 40/week, and double time for hours over 12/day. The employer [describe conduct: e.g., manipulated time records, required off-the-clock work, misclassified employees as exempt].

PAGA Penalty Demand

Pursuant to Labor Code Section 2699(a), [YOUR NAME] seeks to recover civil penalties on behalf of all aggrieved employees for the violations described above. The penalties sought include: $100 per employee per pay period for initial violations and $200 per employee per pay period for subsequent violations, as well as all applicable statutory penalties under the specific Labor Code sections cited. [YOUR NAME] further seeks recovery of reasonable attorney fees and costs pursuant to Labor Code Section 2699(g)(1).

🚀 Next Steps

The PAGA process requires strict compliance with procedural requirements. Follow these steps carefully.

PAGA Filing Process

📌 Step 1: File LWDA Notice Online

File your PAGA notice through the LWDA's online portal at dir.ca.gov/Private-Attorneys-General-Act/Private-Attorneys-General-Act.html. The notice must include specific facts and theories supporting each Labor Code violation. Pay the $75 filing fee.

Timeline

Day 0

File LWDA notice online and send copy to employer via certified mail

Days 1-33

Employer cure period for certain violations (primarily wage statement issues)

Days 1-65

LWDA review period - agency may notify you of intent to investigate

Day 65+

If no LWDA investigation notice, you may file PAGA lawsuit in Superior Court

If LWDA Does Not Investigate

File Civil Lawsuit
After the 65-day waiting period, file your PAGA complaint in California Superior Court. The lawsuit is filed in the county where the violations occurred or where the employer's principal place of business is located.
Combine with Individual Claims
PAGA claims can be combined with individual wage claims, including unpaid overtime, meal and rest break premiums, waiting time penalties, and expense reimbursement. PAGA provides penalties; individual claims provide actual damages.
Discovery and Settlement
Most PAGA cases settle. Through discovery, you can obtain employment records to quantify damages across all aggrieved employees. Settlement must be approved by the LWDA and the court.

Need Legal Help?

PAGA claims are complex and require careful attention to procedural requirements. Most employment attorneys handle PAGA cases on contingency. Get a strategy call to evaluate your claim.

Book Consultation - $125

California Resources

LWDA PAGA Portal: dir.ca.gov/Private-Attorneys-General-Act/Private-Attorneys-General-Act.html
Labor Code Full Text: leginfo.legislature.ca.gov
California Labor Commissioner: dir.ca.gov/dlse - For individual wage claims
State Bar Lawyer Referral: calbar.ca.gov - Find employment attorneys
Legal Aid at Work: legalaidatwork.org - Free and low-cost assistance

👥 When to Hire a PAGA Attorney

PAGA claims are complex representative actions that typically require experienced legal representation. Here's guidance on when you need professional help.

Handle It Yourself When:

✓ Individual Wage Claim Only

If you only want to recover your own unpaid wages, a DLSE wage claim may be simpler than PAGA

✓ Simple Wage Statement Issue

Minor violations like missing employer address that can be cured within 33 days

✓ Small Claims Amount

Your individual damages under $12,500 can be pursued through small claims court

✓ Filing LWDA Notice Only

You want to file a PAGA notice to trigger employer cure period without pursuing litigation

Hire an Attorney When:

⚠ Pursuing PAGA Lawsuit

PAGA litigation is complex—court approval of settlements, proper notice, and procedural requirements demand legal expertise

⚠ Multiple Labor Code Violations

Claims involving various violations (meal breaks, overtime, wage statements) require legal analysis to maximize recovery

⚠ Large Number of Employees

When violations affect many workers, penalties multiply—attorneys can identify and quantify class-wide damages

⚠ Sophisticated Employer

Large companies with legal departments will aggressively defend PAGA claims—you need equal firepower

⚠ Settlement Negotiations

PAGA settlements require LWDA and court approval—experienced attorneys know how to structure compliant agreements

⚠ Discovery Needed

You need to subpoena employer records to prove violations and calculate damages across all aggrieved employees

Benefits of Attorney Representation

Contingency fees: PAGA attorneys typically work on contingency—25% of employee share is common
No upfront cost: Attorneys advance litigation costs and recover them from the settlement
Expert valuation: Attorneys properly calculate penalties across all violations and aggrieved employees
Procedural compliance: PAGA has strict requirements—attorneys ensure proper notice, standing, and settlement approval
Settlement leverage: Experienced PAGA attorneys know what cases are worth and negotiate effectively
Combined claims: Attorneys can pair PAGA with individual claims for actual damages plus penalties

Not Sure If You Need an Attorney?

Take our free 2-minute assessment to get a personalized recommendation based on your specific PAGA situation.

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PAGA Almost Always Requires an Attorney

Unlike simple wage claims, PAGA cases involve complex procedural requirements, court approval of settlements, and representative standing issues. The vast majority of successful PAGA claims are handled by experienced employment attorneys who work on contingency.