|July 20, 2019 | www.fisherphillips.com|
If you’ve received a PAGA notice, you can count yourself as one of several thousands of California employers who receive one every year. In fact, 2018 saw a record number of PAGA claims—over 5,700, a 15 percent jump from 2017—filed with the Labor and Workforce Development Agency. The steadily increasing number can be explained by three characteristics unique to PAGA actions: the absence of class certification requirements, that they are not arbitrable, and cannot be waived. The astronomical potential penalties attached to PAGA actions also helps fuel these types of representative actions. Luckily, there is a 10-step process you can take if you receive such a notice to put your organization in the best possible position.
Although the draconian state law on wage statements often makes it feel like the deck is stacked against the business community, a California Court of Appeals recently provided a rare win for employers when it comes to what information must be provided on the statements. The Court upheld a trial court decision that found the employer did not violate Labor Code Section 226 by using its fictitious business name as the “employer name” on its wage statements, or by providing an employer address that did not contain a mail stop code or ZIP+4 code.
It’s been tough to keep up with developments concerning the fallout from the Dynamex case and California’s new ABC test for determining employee/independent contractor status. The past few months have seen several recent regulatory and judicial developments, while high-stakes negotiations over legislative relief continue in Sacramento.