Resource

2024 Reform Quick Reference

AB 2288 / SB 92 — Defense Provisions

Effective Date: June 19, 2024

Applies to PAGA notices filed on or after this date. Pre-reform notices remain governed by prior law. Check the LWDA filing date, not the date of service on the employer. For matters involving both pre- and post-reform periods, use temporal bifurcation.

Cumulative Impact — Exposure Reduction Cascade

50 aggrieved employees · 26 bi-weekly pay periods · 35% violation rate · Meal period category · Employer qualifies for 15% cap

Step 1

Pre-Reform Baseline

$500K+

$100/$200 penalties + full Naranjo stacking (4 streams) + 25/75 split

Step 2

Anti-Stacking § 2699(i)

$45,500

One $100 penalty per employee per pay period. 50 × 26 × 0.35 × $100

Step 3

15% Cap § 2699(g)

$6,825

Pre-notice compliance documented. $45,500 × 15%

Step 4

35% Employee Share

$2,389

Post-reform split. $6,825 × 35%

Step 5

Per-Employee Recovery

$47.78

$2,389 ÷ 50 employees. Before attorney fees

> 99% reduction in per-category employee-side exposure

Illustrative only. Use the Penalty Estimator tool to model case-specific scenarios.

§ 2699(f)(2)(A)

Default Penalty — $100

Per employee, per pay period. Replaces $100/$200 structure.

Flat $100 for all violations regardless of first/subsequent.

Defense Action

Recalculate all exposure models. Challenge any demand using $200 without evidentiary basis for enhancement.

§ 2699(f)(2)(B)

Enhanced Penalty — $200

Only for malicious, fraudulent, or oppressive conduct, or prior findings.

The $200 penalty requires proof of malice, fraud, or oppression, or a prior finding. The burden falls on the plaintiff.

Defense Action

Object to demands assuming $200 penalties. Move in limine to exclude absent threshold showing.

§ 2699(i)

Anti-Stacking

One penalty per employee per pay period per violation.

Directly curtails the Naranjo derivative cascade. 75% reduction in per-category exposure from anti-stacking alone.

Defense Action

The single most impactful reform provision. Apply in every post-reform model. Use temporal bifurcation for pre-reform periods.

§ 2699(o)

Weekly Halving

Employers who pay weekly: penalties halved.

50% reduction for weekly-pay employers to equalize with bi-weekly/semi-monthly employers.

Defense Action

Identify payroll frequency. Apply 50% reduction to all per-pay-period calculations.

§ 2699(m)

35% Employee / 65% LWDA

Increased from 25/75.

The increased employee share may make smaller amounts more viable for plaintiff's counsel while net settlements decrease.

Defense Action

Update all settlement models to reflect 35/65 split.

For illustrative and educational purposes only. No published appellate decision has yet interpreted the reform provisions.