California’s LWDA Proposes New PAGA Regs

Following the 2024 legislative revamp to the PAGA, the California Labor and Workforce Development Agency (LWDA) has issued a Notice of Proposed Rulemaking (NPRM) to adopt new regulations.

included changes to penalties (along with a bump in the employee share), expanded cure provisions intended to reduce litigation, gave courts the ability to provide injunctive relief and heightened standing requirements, with no retroactive effect.

Proposed regulations to affect the tweaks would cover PAGA notices, investigations, cure procedures, the mechanics of filing and service, as well as settlement reporting.

According to the NPRM, most PAGA-related submissions would be filed through the online portal, with details provided on how the filing works and how deadlines are calculated. The current filing fee of $75 would remain and parties would need to redact specified personal identifiers from filings and attachments.

The proposal would require a standardized form, where claimants would need to include their name, employer name, employment dates, workplace location, position title and a short description of job duties, along with the specific Labor Code section(s) allegedly violated and a “short and plain” statement of facts and theories supporting each alleged violation.

Any litigation and settlements would be limited to the Labor Code violations and theories of liability in the PAGA notice (or amended notice), when procedural requirements are satisfied.

New to the world of PAGA litigation: a “high-frequency filer” filter, which would necessitate a separate cover letter and certifications for an individual or law firm that has filed 200 or more PAGA notices in the preceding 12 months. An exception would be in place for certain nonprofit legal aid organizations. The NPRM would require the claimant, not just counsel, certify that the notice is not “frivolous and lacking in evidentiary support.”

A “vexatious filer” designation would also be introduced, with the LWDA set to maintain a public list of such filers on the portal.

To clarify some of the cure provisions introduced in the amendments, the NPRM sets forth information that would be included in an employer’s cure proposal submitted to the LWDA. It also delineates procedural issues such as how notice of conferences will be provided, the information parties will need to submit prior to conferences and how to dispute cure determinations and appeal them.

The NPRM proposes expanded settlement submission requirements, mandating that a PAGA plaintiff provide notice to all other employees who have filed LWDA notices against the same employer, alerting them to the proposed deal and the date of any approval listing, as well as a summary listing all the PAGA claims included in the settlement. The other employees can then submit comments to the LWDA about the settlement and whether or not the agency should object to it.

In addition, the LWDA added a 45-day period for the agency to review any settlement before an approval hearing.

Public comments on the NPRM will be accepted until March 23.

To read the NPRM, click .

Why it matters: Employers should take a look at the proposed regulations, which could have a significant impact on the procedural life of a PAGA claim if enacted in their current form, from the notice filed with the LWDA to the settlement approval process.