Assembly Bill 1506 grants relief to employers from frivolous actions under PAGA by allowing employers to cure certain alleged wage statement defects before an employee may recover PAGA penalties.
After receiving unanimous bipartisan support in the California State Legislature, Governor Jerry Brown signed Assembly Bill 1506 (AB 1506) into law on October 2. The new law contains an urgency provision and is therefore effective immediately. AB 1506 moves certain wage statement defects into the category of Labor Code violations that employers can cure before employees may file a civil action under the Private Attorneys General Act of 2004 (PAGA), Labor Code Section 2699, et seq.
The legislature originally enacted PAGA to permit employees to file civil actions against an employer to recover civil penalties that the Labor and Workforce Development Agency (LWDA) would otherwise pursue for Labor Code violations. PAGA requires employees to first provide written notice to the LWDA and their employer detailing the alleged Labor Code violations before the employee can pursue civil penalties. If the LWDA does not inform the employee within 33 days that it intends to investigate the alleged violations, then the employee may file a lawsuit to recover penalties on behalf of all aggrieved employees.
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