PAGA – It Can Be a Big Deal for Employers and Employees

Compliance Isn’t Just an Option

Take a few minutes to learn about PAGA.

And, what it means if you could be considered a “managing agent.”

Many employers have never heard of PAGA. But, more and more employers are becoming acquainted with it. Learn about it now.

For those who can be considered “managing agents”, the failure of an employer to comply with the law can extend to you. See below for who can be held personally responsible for an employer’s failure to comply with California employment laws. Yes, personally liable.

If you aren’t sure your business is in compliance with employment laws, take action to get in compliance – now. We can help.

What is PAGA?

PAGA refers to a California statute that essentially “deputizes” employees to act as agents of California’s labor law enforcement agencies. Employees are considered “private attorneys general” to help the state enforce California employment laws and punish employers for violations. Hence, the name Private Attorneys General Act, commonly referred to as PAGA. Not surprisingly, actions under PAGA have been reported to be on the rise – and the costs for employers can be very high.

Employees and the state split what is recovered as penalties – 75% goes to the state and 25% goes to the employee. PAGA also provides for the recovery of attorneys’ fees, which creates an incentive for plaintiff attorneys to assist in these efforts.

How Does PAGA Work?

An employee can file an action against an employer alleging that the employer has failed to comply with California employment laws. The filing employee can present claims for violations that impacted the employee – plus claims for violations that impacted other employees – even if those other violations did not impact the filing employee. Violations can stem from a variety of laws and penalties can pile high – quickly!

The penalties and costs to defend against these claims can decimate an employer.

The Risk for “Managing Agents”

Employees who exercise “substantial authority over decisions that ultimately determine corporate policy” can be considered “managing agents.” Individuals who oversee a substantial portion of an employer’s operations, such as human resources professionals and business executives, supervisors and managers can fall within the term managing agent. These individuals can be held responsible, as the employer, for violations of certain laws.

Other persons “acting on behalf of an employer” can be held personally responsible, as well. Owners, directors and officers of a business or organization can fall within this category.

How We Help

It’s important to get affordable help from professionals who know both the law and how to run a business in compliance with the law.

Yes, that’s us!

We offer affordable annual plans through which our experienced employment law attorneys, who are also experienced HR and business executives, are available to clients for guidance and answers to questions as often as they need help throughout the year. No hourly fees and no limits on time.

Contact us at info@lmrcenter.com or (858) 376-7737.

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