What “Reasonable Steps” Really Mean in 2026: How California Employers Reduce PAGA and Employment Litigation Exposure

As California employers move through 2026, one thing is clear: employment litigation—and PAGA litigation in particular—is not slowing down.

Despite the highly publicized 2024 PAGA reforms, 2025 became the largest year yet for PAGA LWDA filings. That reality has

Happy Holidays! As we close out 2025, I’m reflecting on an incredible year at Zaller Law Group. This year brought both challenges and opportunities for California employers—from navigating new 2026 legislation to managing the ongoing wave of PAGA litigation, to embracing AI tools that are transforming how businesses operate.

Despite the complexity of California’s regulatory

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