Guide · Employment
How to respond to a PAGA notice
A PAGA notice is the letter an employee files with California’s Labor and Workforce Development Agency before suing for Labor Code penalties. When one arrives, preserve records, investigate the claimed violations, and decide quickly whether to propose a cure or ask for an early evaluation conference, because some deadlines run 33 days from the notice.
What the notice is
Under the Private Attorneys General Act, an employee who wants to sue for civil penalties must first give written notice to the LWDA and the employer describing the Labor Code violations and the facts behind them (Labor Code section 2699.3). The employee can file suit only after the LWDA notice period passes without the agency taking up the case.
First steps
- Calendar the dates. Note the date the notice was filed with the LWDA and served on you.
- Preserve records. Timekeeping, payroll, wage statements, policies and handbook acknowledgments for the period claimed.
- Notify your insurer. Check whether your EPLI policy covers wage and hour claims; many don’t, but some cover defense costs.
- Investigate. Review the claimed violations against your records with counsel, under privilege.
- Check arbitration agreements. They can affect where the employee’s individual claim is heard.
Cure and early evaluation under the 2024 reforms
For notices filed on or after June 19, 2024:
| Employer | Option | Timing |
|---|---|---|
| Fewer than 100 employees | Submit a confidential cure proposal to the LWDA | Within 33 days of the notice |
| 100 or more employees | Ask the court for an early evaluation conference and a stay | With or before the first responsive pleading |
| Any employer | Take reasonable steps to comply, which can cap penalties at 15% or 30% | Before the notice, or within 60 days after |
The reforms also require the employee to have personally suffered each violation claimed, and let courts limit claims to keep trial manageable (Labor Code section 2699).
Deadline
33 days goes quickly
If you have fewer than 100 employees, the cure window closes 33 days after the notice. Call counsel the day the notice arrives.
Arbitration
An enforceable arbitration agreement can send the employee’s individual PAGA claim to arbitration (Viking River Cruises v. Moriana), but the employee keeps standing to pursue penalties for other employees in court (Adolph v. Uber Technologies).
Sources
- California Labor Code § 2699.3, notice and cure procedures.
- California Labor Code § 2699, civil actions and penalties (as amended 2024).
- Viking River Cruises, Inc. v. Moriana (2022) 596 U.S. 639.
- Adolph v. Uber Technologies, Inc. (2023) 14 Cal.5th 1104.
Common questions
Don’t see yours? Call (323) 410-0300.
How long does the employee have to wait before suing?
The employee must wait for the LWDA notice period to pass. If the LWDA does not respond, the employee may file suit.
Can we settle a PAGA claim directly with the employee?
PAGA settlements must be submitted to the LWDA and approved by the court. Settling only the individual wage claims does not end the PAGA claim.
Related
The information on this page is general and is not legal advice. Contacting the firm does not create an attorney-client relationship. Prior results do not guarantee a similar outcome.