PAGA Reform: What SB 92 (2024) Changed and What It Means for Your Business

California's Private Attorneys General Act (PAGA) — Lab. Code § 2698 et seq. — has long been one of the most feared tools in plaintiff employment attorneys' arsenals. In 2024, SB 92 significantly reformed the law. Here's what changed and what it means for your business.

What Stayed the Same

PAGA still allows individual employees to sue on behalf of themselves and other "aggrieved employees" for Labor Code violations — and collect penalties that would otherwise only go to the state.

The basic penalty structure remains:

• $100 per employee per pay period for initial violations
• $200 per employee per pay period for subsequent violations
• 75% of penalties go to the Labor and Workforce Development Agency (LWDA)
• 25% goes to aggrieved employees

Do the math: 15 employees, 12 pay periods, initial violation = $18,000 — before attorney fees.

What SB 92 Changed

1. Cure Provisions — Your Most Important Tool

SB 92 significantly expanded cure provisions. Employers who proactively cure violations after receiving a PAGA notice can dramatically reduce or eliminate penalties.

For certain violations, if you cure within 65 days of a PAGA notice:

• Penalties can be reduced by 85% for employers who cure fully
• Cure must be genuine — not cosmetic

What this means: The moment you receive a PAGA notice, you have a 65-day window. How you respond in those 65 days largely determines your outcome.

2. Penalty Caps for Good-Faith Employers

Courts now have broader discretion to reduce penalties where employers can show:

• Good-faith efforts to comply
• No pattern or practice of violations
• Prompt remediation upon learning of the issue

3. Standing Requirements Tightened

Employees can only bring PAGA claims for violations they personally experienced — not every violation across the workforce. This reduces the scope of "stacking" claims.

4. Injunctive Relief Added

Courts can now order injunctive relief — requiring employers to change their practices — in addition to or instead of penalties.

The Bottom Line: Proactive Compliance Still Wins

SB 92 gives good-faith employers more off-ramps. But the best off-ramp is never getting the PAGA notice in the first place.

Common PAGA triggers:

• Missing or defective wage statements
• Meal and rest break violations
• Unpaid overtime
• Late final paychecks
• Missing required workplace postings
• Harassment training deficiencies (yes, PAGA can reach these)

Use our PAGA Penalty Calculator to estimate your exposure based on employee count and pay periods.

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