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
~$480K
Illustrative, 50 employees × 26 pay periods: $200 subsequent-rate penalties + full Naranjo stacking + 25/75 split. Same facts as the cascade reference.
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
~98% reduction in per-category employee-side exposure (employee share measured against employee share)
Illustrative only. Use the Penalty Estimator tool to model case-specific scenarios.

Penalties

§ 2699(f)(2)(B)

Enhanced Penalty — $200

Either a five-year prior finding, to this employer, on this practice — or malice, fraud or oppression found by the court.
Two predicates, and the first carries four limits in a single sentence. Under (B)(i) the $200 rate applies where, within the five years preceding the alleged violation, the agency or any court issued a finding or determination to the employer that its policy or practice giving rise to the violation was unlawful — so the finding must be recent enough, from the right issuer, against this employer, and about this practice. Under (B)(ii) the court determines the conduct was malicious, fraudulent, or oppressive; the statute assigns that to the court rather than the jury.
Defense Action
Object to demands assuming $200 penalties. Ask which predicate is asserted, and if it is a prior finding, ask for its date, its issuer, its recipient and the practice it addressed — each is a place the showing can fail. Move in limine to exclude absent the threshold showing.
§ 2699(i)

Anti-Stacking

Bars a derivative penalty stacked on the underlying unpaid wage violation.
The bar is asymmetric, and the asymmetry is the whole of its defense value: sections 201, 202 and 203 are barred unconditionally, section 204 escapes the bar only on a willful or intentional violation, and section 226 escapes on a knowing or intentional violation or on a failure to provide a wage statement at all. It is not a rule that only one penalty may be collected per employee per pay period. Directly curtails the Naranjo derivative cascade. On the baseline illustration, severing the stacked § 226 and § 203 streams removes roughly 46% of the gross pre-reform figure — before the $200-to-$100 rate change is applied.
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 had construed the reform's cap standards, manageability provision or cure procedures as of August 2026.
Carrier Status Report TemplatePenalty Cap Qualification Tracker