Over 35,000 PAGA notices were filed against California employers over the last 15 years. This startling statistic reveals the increasing prevalence of PAGA claims, which allow employees to sue for Labor Code violations on behalf of themselves, other staff, and the state.  

Curative measures won’t deter all PAGA claims, but prompt remediation of eligible violations subdues litigation risks and conveys good faith efforts toward compliance. 

While successfully curing eligible PAGA violations can help businesses avoid costly litigation, the curing process contains nuances that demand legal guidance. 

What exactly is a PAGA claim? 

In a nutshell, PAGA enables aggrieved employees to recover civil penalties for California Labor Code violations. Known as the Private Attorneys General Act, PAGA essentially deputizes staff to sue on behalf of themselves, other workers, and the state. Employees must first submit notice of alleged violations to the Labor and Workforce Development Agency (LWDA). Employees can file PAGA lawsuits to recoup penalties if the LWDA declines to investigate or issue citations. 

PAGA claims target a broad spectrum of Labor Code infringements, from meal and rest break violations to improper wage statements. If a PAGA suit succeeds, 75% of recovered penalties go to the state, while 25% is distributed to aggrieved staff members. Even unfounded claims can impose burdensome legal costs on employers. However, opportunities exist to cure certain PAGA violations, reducing exposure to litigation. 

What Violations Can Be Cured to Avoid a PAGA Lawsuit? 

The most common curable transgressions involve wage statement flaws under Labor Code section 226(a)(6) and (8). Failure to include the pay period dates or the employer's name and address fall into this category. Fixing these paperwork errors enables employers to avoid PAGA lawsuits for such violations. Other curable offenses involve various wage and hour infringements. 

The Labor Code delineates specific violations under section 2699.5 that cannot be cured. These include retaliation, failure to provide meal and rest breaks, and certain wage statement violations. However, some infractions outside section 2699.5 can be remedied to avert litigation. 

Now that curable violations are defined, we can cover critical deadlines for completing PAGA cures.  

What Are the Deadlines for Curing PAGA Violations? 

You must act swiftly within an immutable 33 calendar-day window after receiving the postmarked PAGA notice from employees. No exceptions exist for this strict deadline. The right to cure expires if eligible violations aren't cured within 33 days of the notice date. 

For wage statement cures, you must correct three years of pay period records for all aggrieved staff. Given the tight timeframe, businesses should consult counsel immediately upon receiving PAGA notices to execute cures promptly. 

How do you Cure PAGA Violations? 

First, you must completely correct the infractions outlined in the notice pertaining to all aggrieved employees. Any ongoing noncompliance issues must be resolved. 

Next, the underlying provisions of the Labor Code alleged to have been violated must be followed. For wage statement cures, this entails issuing fully compliant pay period documentation. 

Another vital component involves making impacted employees financially whole for any losses from the violations. This may encompass back pay, withholding reimbursements, or compensation for missed meal and rest breaks. 

Finally, as mentioned, written notice informing the employee and LWDA of completed cures must be sent within 33 days of the PAGA notice's postmark date. 

Meticulously executing each step bolsters arguments that violations were properly cured if later disputed.  

How Often Can You Cure Violations? 

While the cure process offers employers an invaluable opportunity, limitations exist on frequency. Wage statement violations can only be cured once in a 12-month period. Other curable infractions may be remedied up to three times annually. 

Exceeding these boundaries eliminates cure rights for the remainder of the year. So you should thoroughly audit and address potential areas of noncompliance to avoid exhausting cure chances. 

A PAGA audit can performed by professional employer organizations as part of a bundle of HR services such as payroll processing, benefits administration, and provision of pay-as-you-go workers’ compensation insurance. 

Unfortunately, disputes around cured violations can arise despite limitations. The next section explains how to respond to challenges. Handling disagreements properly is key to preserving cure protections. 

What Should You Do If an Employee Dispute Cures? 

Even when PAGA violations are cured properly, employees may contest the remedies' adequacy. If this occurs, they must provide written notice to the employer and LWDA delineating reasons the cure was insufficient. 

The LWDA then reviews the dispute and makes a determination, typically within 20 days. If the agency finds the cure inadequate, employers may be granted three additional days to remedy the situation. 

Should the LWDA ultimately reject the cure, employees could still pursue litigation. So employers must respond to cure disputes with equal diligence as enacting initial remedies. 

How has “Curing” Evolved Since the Original PAGA Law? 

Initially, employers could cure any PAGA violation. But newer limitations restrict curable infractions. Wage statement remedies are now capped annually, and employees must submit notices to the LWDA before suing. Settlements also require agency notifications and court approval. Meanwhile, some industries secured temporary PAGA exemptions through collective bargaining. Proposed legislation aims to double cure timeframes for wage statements. 

This shifting landscape warrants vigilant tracking by legal counsel. For businesses exploring PEO partnerships, the evolving nature of PAGA especially mandates diligence. While PEOs assume critical employer duties, clients remain subject to PAGA claims absent proper cures. Staying abreast of changes helps organizations make informed decisions. 

PAGA Cures Help Prevent Lawsuits 

As PAGA claims rapidly proliferate, a growing number of California employers will need to navigate the law's nuanced cure provisions. While hardly foolproof, properly remedying eligible violations can mitigate litigation risks and signal credible compliance efforts to the LWDA.  

Mastering PAGA's cure intricacies better positions you to reduce exposure. In today's enforcement climate, the stakes are simply too high not to closely track this evolving facet of California labor law. 

Unsure of how vulnerable you are to a PAGA lawsuit? Find out your risk score by taking Easework’s free, 5-minute HR risk assessment. The average score for companies is 60.  

What score do you get?