AB 2288 & SB 92: A Defense-Side Roadmap to the 2024 PAGA Reforms

The 2024 PAGA reforms created the most significant shift in PAGA defense strategy since the statute's 2004 enactment. This roadmap maps every new provision to a concrete defense action.

The reforms operate on three axes: cure mechanisms, penalty caps, and procedural tools.

Cure: Small employers (under 100 employees within the prior 12 months) may submit a cure proposal to the LWDA for specified violations. All employers benefit from the 'reasonable steps' defense, which can reduce penalties by up to 85% if the employer demonstrates pre-notice compliance efforts.

Penalty Caps: 15% cap for employers who took 'all reasonable steps' to comply before receiving the PAGA notice. 30% cap for employers who took 'all reasonable steps' within 60 days after receiving the notice. The documentation burden is specific: written policies, training records, supervisor acknowledgments, payroll audit evidence.

Procedural: Early evaluation conferences (Lab. Code § 2699.3(f)) allow courts to assess claims before full litigation. Manageability (Lab. Code § 2699(p)) empowers courts to limit evidence and scope. Standing (Lab. Code § 2699(c)) now requires the plaintiff to have 'personally suffered' each violation.

The strategic imperative: build the compliance record before the PAGA notice arrives. Every training log, every policy acknowledgment, every audit report is evidence for the 15% cap.