California: More PAGA Updates
|
APPLIES TO All Employers with Employees in CA |
EFFECTIVE As Indicated |
QUESTIONS? Contact HR On-Call |
Quick Look
|
Discussion:
The California’s Private Attorneys General Act (PAGA) continues to be a hot topic for employers. Last month, the California Supreme Court issued two opinions limiting how PAGA impacts employers. On August 1, 2024, in Turrieta v. Lyft, Inc., the California Supreme Court said that an employee who acts as a representative for the State in a PAGA lawsuit does not have the right to intervene in the PAGA lawsuit or settlement of another representative employee. There, employee Turrieta sought to obtain court approval of his PAGA settlement, which would have resolved all PAGA claims that could have been brought against the employer. However, a PAGA plaintiff in another lawsuit against the same employer, with overlapping claims, sought to object to Turrieta’s settlement and intervene in the case. The Court ultimately said that a PAGA plaintiff in a separate lawsuit does not have standing to intervene in another PAGA lawsuit against the same employer.
On August 15, 2024, in Stone v. Alameda Health System, the California Supreme Court said that PAGA penalties do not apply to public entities. Here, a county entity was sued for alleged wage and hour violations under the Labor Code. Default penalties (where the underlying Labor Code violation in the PAGA lawsuit does not have its own penalty) do not apply to public entities because they are not included in the definition of who can be liable. However, the application of nondefault penalties (where the underlying Labor Code violation in the PAGA lawsuit does have its own penalty) was silent as to whether public entities may be liable. The Court ultimately determined that both default and nondefault penalties do not apply to public entities.
Employers should continue to have PAGA claims reviewed by legal counsel to evaluate the appropriate response and litigation strategy.
Action Items
- Have PAGA claims reviewed by legal counsel.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2024 ManagEase