How to Confront PAGA Actions in California - Examining the Employment Policies and Practices

Corey Cabral recently authored the article "How to Confront PAGA Actions in California - Examining the Employment Policies and Practices" for HR.com on March 28, 2019.

In this article, Corey shared that "Employers in California are beginning to realize what a significant threat to their company a California’s Private Attorneys General Act (PAGA) claim can present. Employers are also beginning to understand PAGA claims are not readily avoided.

Certain industries have been inundated with the threat of PAGA litigation. In 2018, over 150 PAGA Notice Letters were submitted with the state alleging claims against hospitals and medical companies. Ambulance companies, however, have largely avoided PAGA actions. Between 2016 and 2018, approximately 10 ambulance companies faced the threat of PAGA litigation.

This is due, in large part, to various Labor Code and Wage Order exemptions that apply to employees of these companies. The approval of Proposition 11, however, created new Labor Code statutes that could, feasibly, serve as the basis for a representative PAGA action. That said, ambulance companies should prepare themselves to confront PAGA claims.

While PAGA actions are representative civil actions (similar to class actions), and most employers treat them that way, all California employers should treat PAGA actions as criminal law enforcement actions."

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