6.11.25
By Jennifer Jacobus, PHRca, SDEA CEO
If you’re an HR professional or a small business owner in California, you’ve likely heard the term “PAGA” thrown around, but what does it really mean for your business?
PAGA stands for the Private Attorneys General Act, a California law that allows employees to file lawsuits on behalf of the state for certain labor code violations. These claims don’t need to go through the usual channels of the Labor Commissioner, instead, employees (and their attorneys) can pursue penalties directly, even for minor or unintentional mistakes.
Why Should This Matter to You?
Because PAGA claims can cost employers big, even small businesses. These penalties can stack up quickly, especially when multiple employees are involved or when violations go back several years. Common issues that lead to PAGA claims include:
- Inaccurate or incomplete wage statements
- Missed or late meal and rest breaks
- Unreimbursed expenses (like mileage or uniforms)
- Off-the-clock work or improper rounding practices
Even well-meaning employers can get caught off guard. That’s why it’s critical to regularly audit your HR practices, payroll procedures, and job classifications. These proactive steps can help identify and fix compliance gaps before they become costly legal issues.
SDEA’s payroll partner, Select Payroll, is offering a FREE Wage statement audit for California employers. Click HERE for more information or to take advantage of the free audit, and remember to join SDEA and Select Payroll for our webinar, Dodging PAGA Drama.
At SDEA, we help our members stay ahead of risk with expert guidance, trainings, and compliance reviews. Don’t wait for a demand letter to find out where you went wrong.
Have questions about PAGA or need support conducting an internal audit? Reach out to SDEA, we’re here to help you protect your business and your bottom line.
