As California employers enter 2026, one thing is clear: PAGA risk is not going away—and it is not plateauing.
The numbers tell the story. Despite the highly publicized 2024 PAGA reforms, 2025 became the largest year yet for PAGA filings. That reality should reset expectations for California employers. Reform did not reduce filings—it changed how
For most California employers, employee time and pay data has historically been treated as a legal obligation—something you keep because the law requires it, not because it creates value.
That mindset needs to change in 2026.
After years of defending employers in wage-and-hour class actions and PAGA cases, I have seen firsthand how employee data
After more than twenty years defending California employers, I have seen a consistent pattern: even companies with sophisticated systems struggle with one of the most fundamental compliance obligations in California employment law—maintaining, accessing, and analyzing employee time records. These challenges are not merely operational inconveniences. They routinely lead to unnecessary legal exposure, inflated PAGA penalties
As we approach 2026, California employers face a new round of legal and financial adjustments that will directly impact payroll budgeting, exempt classifications, and compliance risk. From statewide wage increases to industry-specific salary thresholds, these updates require careful planning to avoid misclassification claims, PAGA exposure, and penalties.
Here are the top five increases California employers
As we move toward 2026, California employers—especially in hospitality—are navigating one of the most complex wage-and-hour landscapes in the country. The 2024 PAGA reform brought meaningful relief, but only for employers who take their compliance obligations seriously and can prove it.
At the same time, technology and AI are beginning to transform what compliance
As the holiday season approaches, it’s a perfect time for California employers to revisit their policies on holiday leave, scheduling, and pay practices. Last week, we covered key vacation considerations for the busy season. This week, we’re focusing on five important reminders to help ensure compliance and smooth operations as the year winds down.
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2025 has delivered a series of powerful—and practical—employment law decisions. These five cases carry direct lessons for every California employer, especially in areas where minor missteps can lead to major liability.
1. Iloff v. Bridgeville Properties, Inc. – California Supreme Court (2025) – “Good Faith” Requires Real Effort
This case involved a handyman who performed
Quick Story:
An HR lead recently ran a simple 30-minute spot audit and uncovered two issues—meal breaks were routinely starting late at one location, and a manager at another location was unsure whether employees needed to record 10-minute rest breaks. Small corrections, but they prevented what could have escalated into a costly PAGA claim, potentially
California employers continue to face heavy scrutiny and litigation regarding their meal and rest break practices. Since the Brinker Restaurant Group v. Superior Court decision in 2012, courts have reaffirmed that compliance is measured by strict timing rules, not just having written policies in place. Here are five key reminders on the timing requirements and
Recently, while recording a podcast, I found myself talking about something I’ve been thinking about for a long time: how much harder HR is than people give it credit for.
We tend to see HR as “soft” compared to the other seats in the C-suite. CFOs, COOs, and CTOs have hard numbers and clear metrics.