California Partner Examines Effort to Upend Formula for Splitting PAGA settlements

In an interview with Daily Journal, Hannah Sweiss discusses a new effort to change how PAGA settlement claims are split and provides insight on how this petition may pan out. The current status quo for PAGA settlements follows other settlements, where attorney’s fees and costs are taken “off the top” from the initial fund. Then, workers get 25% of what is remaining, and the rest goes to the state. Recent efforts are pushing for 25% of the lump sum of the total settlement amount to be awarded to employees.

Hannah believes the state agency might contest the petition because of the significant amount of money it receives from PAGA settlements. “The whole purpose behind PAGA was that there were not enough resources to be able to enforce the labor code,” Hannah added.

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