PAGA Claims in California After the 2024 Reform: What Workers Need to Know in 2026

If your employer has violated California’s wage and hour laws – failing to pay overtime, skipping meal breaks, or misclassifying workers – you may have heard about something called a “PAGA claim.” PAGA stands for the Private Attorneys General Act, and it is one of the most powerful tools available to California workers seeking to hold employers accountable for wage violations.

But PAGA has also changed significantly. In 2024, California passed major reform legislation – Assembly Bill 2288 and Senate Bill 92 – that restructured PAGA penalties, modified the claim process, and aimed to address concerns from both worker advocates and employers about how the law was functioning.

This guide explains what PAGA is, what changed in 2024, and what California workers should understand about filing a PAGA claim in 2026.

What Is PAGA?

PAGA – codified at California Labor Code § 2698 et seq. – was enacted in 2004. It allows individual employees who have suffered certain Labor Code violations to file civil penalty claims not just for themselves, but on behalf of all other current and former employees who experienced the same violations during a defined period.

In practical terms, PAGA turns individual employees into “private attorneys general” – allowing them to step into the shoes of the state Labor Commissioner and pursue civil penalties against employers for labor violations.

PAGA was created because the California Labor and Workforce Development Agency (LWDA) had limited resources and could not investigate every complaint. PAGA gave employees the ability to step in and act on the state’s behalf when the state could not.

Who benefits:

• The individual plaintiff employee
• Other current and former employees subject to the same violations (“aggrieved employees”)
• The State of California (which receives a percentage of recovered civil penalties)

What the 2024 PAGA Reform (AB 2288 and SB 92) Changed

On July 1, 2024, Governor Newsom signed AB 2288 and SB 92 – the most significant overhaul of PAGA since its original enactment. The reforms apply to PAGA notices that were submitted to the LWDA on or after June 19, 2024.

Key changes:

Revised Penalty Structure

Prior to 2024, PAGA penalties could reach $100 per employee per pay period for initial violations and $200 for subsequent violations. The 2024 reform restructured these amounts based on employer conduct rather than employer size. Employers who promptly fix violations, or who had already taken meaningful steps to comply with the law, may qualify for reduced penalties, while employers who ignore violations or act in bad faith continue to face the harsher penalties.

New Early Resolution Process

AB 2288 created a new early resolution and mediation framework which allows employers to request early resolution before the case proceeds. Employers who cure violations in good faith may be eligible for penalty reductions.

Strengthened Standing Requirements

The reform clarified that plaintiffs must have personally suffered each Labor Code violation they seek to pursue, within the one-year period preceding the PAGA notice, which can limit plaintiffs’ ability to bring claims on behalf of employees who experienced different violations than the plaintiff.

Core PAGA Rights Maintained

Despite the reform:

• Employees can still bring PAGA claims without class certification requirements
• Attorney’s fees remain available for prevailing employees
• The LWDA pre-filing notice requirement remains in effect
• Civil penalties for Labor Code violations remain significant

Who Can File a PAGA Claim in 2026?

To file a PAGA claim, a worker generally must:

1. Be a current or former California employee
2. Have personally experienced the Labor Code violations they seek to pursue
3. Have filed the required PAGA Notice with the LWDA at least 65 calendar days before filing in court
4. File within the applicable statute of limitations – generally one year from the date of the alleged violation

What Labor Code Violations Does PAGA Cover?

Common violations that give rise to PAGA claims:

• Unpaid overtime (Lab. Code § 510, § 1194)
• Minimum wage violations (Lab. Code § 1197)
• Noncompliant meal periods (Lab. Code § 226.7, § 512)
• Noncompliant rest periods (Lab. Code § 226.7, IWC Wage Orders)
• Pay stub or wage statement violations (Lab. Code § 226)
• Waiting time penalties (Lab. Code § 203)
• Employee misclassification (Lab. Code § 226.8)
• Off-the-clock work

How the PAGA Claim Process Works

1 LWDA Notice (65-day waiting period)

Before filing, the employee must submit a written notice to the LWDA and the employer describing the alleged violations. The LWDA has 65 calendar days to decide whether to investigate. If it declines or does not respond, the employee may file in court.

2 Early Resolution

Under AB 2288, the employer may request early resolution – including mediation before the case proceeds through either an LWDA-supervised or court-supervised process, depending on the number of employees the employer has. Employers who cure violations in good faith may be eligible for penalty reductions.

3 Filing the Civil Action

If early resolution doesn’t result in settlement, the PAGA lawsuit is filed in superior court. Unlike class actions, PAGA claims do not require class certification.

4 Discovery and Litigation

PAGA cases proceed through civil discovery, motion practice, and ultimately trial or settlement.

5 Settlement or Judgment

PAGA settlements require court approval. Recovered civil penalties are distributed:

• 65% to the LWDA
• 35% to the aggrieved employees

Individual employees may also separately recover back wages and other remedies outside the PAGA penalty framework.

PAGA vs. Class Action – Key Similarities and Differences

PAGA claim:

• No class certification required
• Brought by individual employee on behalf of the state as a “private attorney general”
• 65% of penalties go to LWDA, 35% to employees
• 1-year statute of limitations
• Court approval required for settlement

Class action:

• Certification required
• Class representative acts on behalf of class members
• 3-4 year statute of limitations (typically)
• Court approval required for settlement

In many wage and hour cases, an attorney may pursue both PAGA penalties and individual damages together.

Frequently Asked Questions

Call Blackstone Law at (310) 956-4054 or contact us online to request a free case evaluation. Because filing deadlines vary depending on the type of claim, consider seeking legal advice promptly.