Insurance & employment litigation · California & Nevada

Home / Insights / How to Respond to a PAGA Notice

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

  1. Calendar the dates. Note the date the notice was filed with the LWDA and served on you.
  2. Preserve records. Timekeeping, payroll, wage statements, policies and handbook acknowledgments for the period claimed.
  3. Notify your insurer. Check whether your EPLI policy covers wage and hour claims; many don’t, but some cover defense costs.
  4. Investigate. Review the claimed violations against your records with counsel, under privilege.
  5. 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:

Options after a PAGA notice
EmployerOptionTiming
Fewer than 100 employeesSubmit a confidential cure proposal to the LWDAWithin 33 days of the notice
100 or more employeesAsk the court for an early evaluation conference and a stayWith or before the first responsive pleading
Any employerTake 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).

PAGA and class action defense

Sources

  1. California Labor Code § 2699.3, notice and cure procedures.
  2. California Labor Code § 2699, civil actions and penalties (as amended 2024).
  3. Viking River Cruises, Inc. v. Moriana (2022) 596 U.S. 639.
  4. 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

Practice page

Representative and class claims.

Practice page

Overtime, breaks and misclassification.

Practice page

Agreements, handbooks and audits.

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.

Talk to an employment attorney

An attorney will get back to you promptly. Have the demand letter, agency charge or complaint handy if you have one.

Name and a description are required. Give us a phone number or an email, whichever you prefer.

Contacting the firm does not create an attorney-client relationship. Please don’t send confidential details until we confirm there is no conflict.

Thank you. Your message was sent.

An attorney will get back to you promptly. If your matter has a deadline this week, call (323) 410-0300.


What happens after you send it

01

We reach out

An attorney reads your message and contacts you promptly to set up a free consultation.

02

We review your situation

We go over the facts and any documents you share, and check for conflicts.

03

We talk through your options

We explain where you stand and the paths forward, so you can decide what to do next.