Law-breaking employers paid more than $88 million in penalties last year under a progressive California law that guards workplace rights, a new report finds. That’s up dramatically from $30.3 million in 2018.
The Private Attorneys General Act lets workers sue on behalf of the State of California to recover civil penalties on behalf of the State and affected workers for labor violations. This legal option is available regardless of whether an employee has signed a forced arbitration agreement — which in many places has effectively quashed a worker’s ability to meaningfully resolve workplace disputes.
Why does this matter?
In just one category — minimum wage violations — U.S. employers steal an estimated $15 billion a year from workers, according to a 2017 report by the Economic Policy Institute. The most vulnerable? Low-wage workers.
The underpayment averages out to $64 a week, which is nearly a quarter of their earnings. Extrapolated to an annual basis, that means a victim loses an average of $3,300 and earns just $10,500, the EPI report says.
Such violations used to fly under the radar because of limited capacity for state enforcement. However, PAGA enlists the help of expert private attorneys — like we have here at Keller Grover — to make sure employers that exploit their workers face stiff consequences. These aren’t low-profile companies — top PAGA judgments and settlements have targeted employers such as Bank of America, Walmart, Rite Aid, Target, Virgin America and CVS, according to a February report from the UCLA Labor Center, The Center for Popular Democracy and the Partnership for Working Families.
To initiate action under PAGA, a worker must file a claim with the Labor and Workforce Development Agency and pay a $75 filing fee. The agency decides within two months whether to investigate and resolve the case; if it elects not to, the worker may begin a civil action.
If a case settles or goes to trial and a judgment is obtained, the State gets 75% of the recovery and the affected workers share the remaining 25%. If your employer is violating labor law — whether that means shortchanging your pay or not providing a suitable place to sit at work — start with one of Keller Grover’s free consultations. The lawyers at Keller Grover have recovered hundreds of millions of dollars for clients and class members in more than 25 years litigating fraud and employment cases.