Interactive Tool

Penalty Cap Qualifier

Evaluates whether an employer's compliance documentation satisfies the 'all reasonable steps' standard for the 15% or 30% PAGA penalty caps under the 2024 reforms. Walks through the specific documentation categories — written policies, supervisor training records, payroll audits, employee acknowledgments — and scores the employer's qualification status with identification of documentation gaps.

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Methodology+

Interactive · Penalty Cap Qualifier

Assess whether you qualify for the 15% or 30% penalty cap under the 2024 PAGA reforms (AB 2288 / SB 92).

Written meal period policy distributed to all employees

Brinker (2012) 53 Cal.4th 1004

Written rest period policy (off-premises permitted)

Augustus (2016) 2 Cal.5th 257

Written overtime/timekeeping policy prohibiting off-the-clock work

Lab. Code §§ 510, 1194

Signed employee acknowledgments on file for all policies

Supervisor wage-and-hour training with attendance records

Payroll audit conducted within prior 24 months

Regular rate calculation methodology documented (includes all non-discretionary comp)

Alvarado (2018) 4 Cal.5th 542

Expense reimbursement policy with submission procedures

Lab. Code § 2802

Complaint mechanism with 2+ channels and anti-retaliation language

Time-clock rounding eliminated or data-verified as net-neutral

Donohue (2021) 11 Cal.5th 58

Meal/rest premiums calculated at regular rate, not base rate

Ferra (2021) 11 Cal.5th 858

Electronic attestation system for noncompliant meal punches

Use the buttons to mark each item: No / Undocumented / Documented

Score

0 / 24 points

15% Cap Qualification

Unlikely Without Action

Documentation gaps identified

Dollar Impact

Exposure input:

$500K

With 15% cap: $75K

Savings: $425K

Documentation Gaps (12 items)

•

Written meal period policy distributed to all employees

•

Written rest period policy (off-premises permitted)

•

Written overtime/timekeeping policy prohibiting off-the-clock work

•

Signed employee acknowledgments on file for all policies

•

Supervisor wage-and-hour training with attendance records

•

Payroll audit conducted within prior 24 months

•

Regular rate calculation methodology documented (includes all non-discretionary comp)

•

Expense reimbursement policy with submission procedures

•

Complaint mechanism with 2+ channels and anti-retaliation language

•

Time-clock rounding eliminated or data-verified as net-neutral

•

Meal/rest premiums calculated at regular rate, not base rate

•

Electronic attestation system for noncompliant meal punches

Read the AnalysisAB 2288 & SB 92: A Defense-Side Roadmap to the 2024 PAGA Reforms →

For illustrative purposes only. Penalty cap qualification depends on the specific facts of each case. Lab. Code § 2699(g)(1) (15% cap); § 2699(h)(1) (30% cap).

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For illustrative purposes only. This tool does not constitute legal advice.