If you are a California employer, there is a major unresolved issue in PAGA litigation that could significantly impact your exposure—and your ability to enforce your arbitration agreements.
It is called a “headless” PAGA claim, and right now, California courts are split on whether these claims are even allowed.
The result: uncertainty, inconsistent outcomes, and
On February 6, 2026, the California Labor and Workforce Development Agency (LWDA) published a Notice of Proposed Rulemaking to adopt the first-ever set of formal regulations governing PAGA’s administrative procedures. That sentence alone should get the attention of every California employer.
Since PAGA was enacted in 2004, and even after the landmark 2024 reforms, there