Dear Employers: Please, as soon as superhumanly possible, confront and upgrade workplace practices to full Labor Code compliance. It pains me to hear a procrastinator ask the cost of defense - the projected time, money, risk -- when facing a class action or "PAGA" (2004 Private Attorneys General Act) suit. As these cases involve so many factors, "expense more than you can likely imagine" is about as specific as one can get.

California class action and PAGA litigation is a growth industry with every viable business in the crosshairs. See, e.g., The Data Is In--California Class Action and PAGA Filings to Hit New Highs (January 12, 2024) (class actions filings have steadily risen since 2017 with a staggering 20% increase in 2023, over 5,000 cases statewide). See also PAGA Monster Grow More Legs - Best Protection Against Potentially Devastating Group Labor Claims is ... Prevention (February 2, 2024) (for even a handful of irregular meal break timekeeping records for 30 workers, averaging 1.5 violations per week for one year, one company recently faced $468,000 in PAGA penalties).

Best practices demand an internal proactive wage audit to locate and fix improper pay practices before the process server comes knocking with summons and complaint. Critical compliance issues include:

• Independent contractor classification;
• Salaried worker classification;
• Pay periods and timing of payroll;
• Itemized wage statements;
• Timekeeping records, including rounding and accuracy of tracked time;
• Alternative workweek schedules;
• Compensation for minimum wage, overtime, reimbursed expenses, bonuses, commissions, piece rate, mileage, travel time, training time, mandatory meetings, sick pay, vacation or paid time off (PTO) pay;
• Meal and rest break practices;
• Fair Pay Act compensation for similar job duties;
• Interns and volunteers; and
• Remote worker compensation.

Take-Away:

Our firm can help conduct friendly wage audits, from a small scale targeting of time and pay records to a thorough inspection of multiple wage-and-hour matters. Please, do it ... now.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

• PAGA Monster Declawed- Major Relief for Responsible Employers (June 28, 2024)
• Timekeeping Policy - Fourth Dimension Attention: It's in the Cards (February 24, 2023)
• Please: Document Workplace Meal Breaks - Require Employees to Clock Out and Back In on Their Meals (June 4, 2021)

Tim Bowles
August 30, 2024