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
[Update: The California Legislature passed AB 228 and SB 92 on June 27, 2024, and Governor Newsom signed both bills into law on July 1, 2024.]
The potential new law reforming the Private Attorneys General Act (PAGA) is set to bring significant changes to California’s labor landscape. If enacted, AB 2288 and SB 92 will
On June 18, 2024, Governor Newsom announced a compromise to reform California’s Private Attorneys General Act (PAGA). This announcement follows intense negotiations prompted by a looming ballot measure to repeal PAGA this November. With PAGA cases skyrocketing and average settlements reaching $1.1 million, this reform package introduces crucial changes for California employers. Attorneys Anne McWilliams
On June 18, 2024, Governor Newsom announced that a compromise had been reached to reform California’s Private Attorneys General Act (PAGA). The negotiations were brought about by a ballot measure to repeal PAGA this November. PAGA cases have been increasing astronomically against California employers, exposing them to huge penalties, and on average PAGA cases
Enacted in 2004, California’s Private Attorneys General Act (PAGA) was designed by the California Legislature to offer financial incentives to private individuals to enforce state labor laws by recovering certain civil penalties. Aggrieved employees can seek recovery of civil penalties for Labor Code violations they suffered, in addition to penalties for all Labor Code violations