California Labor Code 2698

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9 Dec, 2024
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California’s Private Attorneys General Act and Labor Code 2698: Game-changers for workers standing up for their rights!

California Labor Code 2698 and the Private Attorneys General Act let workers enforce labor laws when state agencies can’t. YOU can address unpaid wages, missed breaks, misclassifications, and more.

If you’re a worker in California dealing with unfair treatment by your employer—like unpaid wages, missed breaks, or unsafe working conditions—you might feel powerless. Maybe you’ve heard of California Labor Code 2698 but don’t know what it means or how it applies to your situation.

Let’s be clear: You have rights, and there’s a powerful law designed to protect them. California Labor Code 2698 is the opening section of the Private Attorneys General Act (PAGA). It serves as the law’s preamble, stating its purpose: empowering employees to act as “private attorneys general” to enforce labor laws when state agencies lack resources. It’s the foundation for holding employers accountable for violations.

In this article, we’ll break down what PAGA is, how it works, and how it can help you fight back against unlawful workplace practices. Most importantly, we’ll explain why working with a skilled California employment law attorney from Consumer Attorneys is essential to navigating the complexities of this law and achieving the justice you deserve.

What is California Labor Code 2698 (PAGA)?

California’s Private Attorneys General Act (PAGA) is a groundbreaking law that empowers employees to enforce labor laws. Passed in 2004, PAGA allows workers to sue employers for violations of the California Labor Code—not just on their own behalf, but on behalf of other employees and the state as well.

Essentially, PAGA deputizes workers to act as “private attorneys general,” stepping in to enforce laws that state agencies, such as the California Labor Commissioner, may not have the resources to address.

The law recognizes that people need their paychecks.

Why Does PAGA Exist?

California has some of the strongest labor laws in the country, protecting workers’ rights to fair wages, safe workplaces, and more. But enforcing these laws can be challenging.

State agencies are often understaffed and underfunded, leaving many violations unaddressed. PAGA fills this gap by giving employees the power to take action themselves. This law recognizes that when employers break the rules, it’s not just a private issue—it’s a public one that affects workers, their families, and the broader community.

Types of Violations Covered Under PAGA

PAGA applies to a wide range of California Labor Code violations, including but not limited to:

Type of ViolationDescriptionPotential Remedies
Unpaid WagesFailing to pay minimum wage, overtime, or earned commissions.Backpay for unpaid wages, penalties for delayed payment, and interest.
Missed BreaksDenying legally required meal and rest breaks.Compensation for missed breaks (one additional hour of pay per violation) and penalties.
Unsafe Work ConditionsViolating workplace safety standards creates hazardous environments.Workplace safety improvements, penalties, and compensation for injuries caused by unsafe conditions.
Illegal Wage DeductionsTaking unauthorized deductions from employee paychecks.Reimbursement of unlawfully deducted wages and penalties.
Worker MisclassificationMisclassifying employees as independent contractors to avoid paying wages, overtime, or benefits.Reclassification as employees, backpay, benefits, and penalties for misclassification.
Failure to Provide Pay StubsNot providing accurate, itemized wage statements showing hours worked, wages earned, and deductions.Statutory penalties and corrections to wage statements.
Failure to Reimburse ExpensesNot reimbursing employees for work-related expenses (e.g., mileage, tools, uniforms).Reimbursement of expenses and penalties for noncompliance.
Late Final PaychecksFailing to issue a final paycheck on time after termination.Penalties under California’s waiting time laws (up to 30 days of wages).
Off-the-Clock WorkRequiring employees to work before clocking in or after clocking out without compensation.Compensation for unpaid time, penalties, and back pay for missed overtime.
Discrimination / RetaliationPunishing employees for reporting labor law violations or exercising workplace rights.Reinstatement (if applicable), lost wages, damages, and penalties for retaliatory behavior.

If your employer has violated any of these laws—or other labor protections—PAGA might be the tool you need to hold them accountable.

How Does PAGA Work?

If you’ve experienced workplace violations and want to take action under PAGA, here’s how the process typically unfolds:

Step 1: Filing a Notice with the LWDA

Before filing a PAGA lawsuit, you must notify California’s Labor and Workforce Development Agency (LWDA) and your employer of the alleged violations. This notice must be detailed, including the specific violations and how they occurred.

Step 2: Waiting for LWDA Action

The LWDA has 65 days to review your notice and decide whether to investigate the claim themselves. If they don’t act, you gain the right to move forward with a PAGA lawsuit.

Step 3: Filing a PAGA Lawsuit

Once the 65-day period passes (or if the LWDA declines to investigate), you can file a lawsuit against your employer. In most cases, this is a representative action, meaning you’re pursuing the claim on behalf of yourself, your coworkers, and the state.

Step 4: Penalties and Recoveries

If successful, the lawsuit can result in significant penalties for the employer. Under PAGA:

  • 75% of penalties go to the state of California.
  • 25% of penalties go to the employees affected by the violations.

While the state takes the majority of the penalties, employees still benefit financially and, more importantly, help enforce critical labor laws.

Why PAGA is a Powerful Tool for Workers

PAGA’s biggest strength lies in its collective power. Rather than relying on individual employees to address labor violations alone, it allows one worker to represent an entire group. This is especially important when the harm caused by an employer’s violation may seem minor on an individual level but adds up to significant wrongdoing across the workforce.

For example:

  • Missed Breaks: Missing one meal break might seem trivial, but the financial and personal toll is massive if dozens of workers miss breaks daily.
  • Unpaid Wages: A small amount of unpaid overtime might go unnoticed, but when multiplied across a workforce, it becomes a major violation.

By addressing violations through PAGA, workers ensure employers feel the full weight of their unlawful practices.

Skipping one 15-minute break might seem minor, but consider this: if a corporation makes 48 workers miss a 15-minute break every shift for a year, it adds up fast. At California’s $15.50 minimum wage, that’s $180,960 in unpaid wages over 250 workdays. For workers, it’s lost money and rest; for employers, it’s a serious legal violation.

Challenges of Pursuing a PAGA Claim

While PAGA is a powerful tool, it’s also complex. Employers often fight back aggressively, disputing claims to avoid financial penalties and reputational damage. Common employer defenses include:

  • Claiming the alleged violations didn’t occur.
  • Arguing that employees misinterpreted workplace policies.
  • Asserting that penalties are excessive or unwarranted.

Navigating these defenses requires legal skill and deep knowledge of California employment laws. That’s why it’s critical to have an experienced employment law attorney on your side.

Why You Need a California Employment Law Lawyer

Filing a PAGA claim without a lawyer can feel like trying to navigate a maze without a map. Here’s why working with an experienced attorney is essential:

1. Professional Guidance

PAGA claims involve strict deadlines, detailed notices, and legal nuances. A skilled lawyer knows the ins and outs of the process and ensures your claim is filed correctly, on time, in the right place, with all the t’s crossed and all the i’s dotted.

2. Building a Strong Case

Proving labor violations often requires gathering substantial evidence, such as pay stubs, schedules, and witness statements. An attorney will help you collect and present this evidence effectively.

3. Maximizing Your Recovery

An attorney can negotiate with the employer or represent you in court to secure the best possible outcome—not just for you but for your coworkers now and workers the company will hire in the future.

4. Leveling the Playing Field

Employers have teams of lawyers ready to defend them. With an experienced attorney, you’ll have someone equally skilled in fighting for your rights.

5. Emotional Support

Facing employer violations and legal battles can be overwhelming and isolating. A compassionate lawyer provides more than legal expertise—they offer emotional support, listen to your concerns, and help you feel heard and validated. Knowing you have someone in your corner who genuinely cares about your well-being can make a world of difference during such a challenging time.

Real-Life Examples of PAGA in Action

To understand the impact of PAGA, consider these examples:

  • Unpaid overtime. A retail worker discovers their employer has been miscalculating overtime pay for years. Filing a PAGA claim leads to back pay for hundreds of employees.
  • Workplace safety. A warehouse employee reports unsafe conditions under PAGA, forcing the company to improve practices for all workers.
  • Break violations. A fast-food employee denied meal breaks sues under PAGA, resulting in policy changes and compensation for affected staff.

In each case, PAGA empowered workers to create meaningful change—not just for themselves but for everyone impacted by the violations. And in each case, these workers were rewarded with the compensation they deserved.

What to Do If You Think Your Employer Violated California Labor Code 2698

If you suspect your employer has broken California labor laws, here are the steps to take:

  1. Document everything. Keep records of your hours, wages, breaks, and any communication with your employer about these issues.
  2. Talk to coworkers. If you’re experiencing violations, others likely are too. Their accounts can strengthen your case.
  3. Consult Consumer Attorneys. Before filing a claim, speak with one of Consumer Attorneys’ experienced California employment law lawyers. We will assess your situation and guide you through the process.

Protect Your Rights Today

Dealing with labor violations is exhausting, especially when you feel like your employer holds all the power. But California Labor Code 2698 exists to give workers like you a voice and the tools to demand justice. The lawyers at Consumer Attorneys are here to amplify your voice by ensuring that people hear your voice and listen to what you’re saying and that your courage is rewarded to the maximum extent it can be!

If your employer has broken the law, you don’t have to face them alone. Consumer Attorneys can guide you through every step, from filing a PAGA claim to achieving the resolution you deserve.

Remember, time is critical in these cases. Contact us today to take the first step toward protecting your rights and holding your employer accountable. You’re not just fighting for yourself—you’re standing up for fairness and justice in the workplace.

Frequently Asked Questions

California Labor Code 2698 is the opening section of the Private Attorneys General Act (PAGA). It establishes the law’s purpose: empowering employees to act as “private attorneys general” to enforce labor laws. PAGA allows workers to sue employers for labor violations, such as unpaid wages or unsafe conditions, on behalf of themselves, coworkers, and the state. This law addresses gaps in enforcement when state agencies lack the resources to act, ensuring employers are held accountable for unlawful practices.

PAGA covers a broad range of violations, including unpaid wages, missed meal/rest breaks, unsafe work conditions, worker misclassification, illegal wage deductions, late final paychecks, and off-the-clock work. It also addresses failures to provide itemized pay stubs, reimburse expenses, and workplace retaliation. Penalties under PAGA ensure employees are compensated, and employers must rectify unlawful practices. These violations often harm individual workers and entire teams, making PAGA a powerful tool for collective justice.

The PAGA process begins by filing a detailed notice with California’s Labor and Workforce Development Agency (LWDA) and notifying your employer of the violations. The notice must specify the alleged violations and how they occurred. The LWDA has 65 days to review the claim and decide whether to investigate. If the LWDA does not act, you gain the right to file a PAGA lawsuit. These lawsuits often represent all affected employees, not just the person filing. If successful, penalties are imposed on the employer, with 75% going to the state and 25% shared among affected employees. This process ensures accountability, fair compensation, and compliance with California labor laws, protecting workers from employer misconduct.

PAGA claims are complex, involving strict deadlines, detailed notices, and legal nuances. Employers often push back with aggressive defenses, disputing claims or misinterpreting labor laws to avoid penalties. An attorney ensures your claim is correctly filed, gathers evidence, and builds a strong case to maximize your recovery. Beyond legal expertise, they provide emotional support, confidently helping you navigate this challenging process. Facing employer violations alone can be overwhelming, especially when companies have legal teams ready to fight back. A skilled attorney levels the playing field, protecting your rights and increasing your chances of success. With their help, you can secure fair compensation and accountability for workplace violations under California labor law.

You will need evidence to 1) prove these violations and 2) provide the calculation for how much your employer owes you and your colleagues. Document everything, including hours worked, wages, scheduling sheets, schedules, breaks, and communications with your employer. Talk to coworkers to see if others have experienced similar violations, as collective action strengthens your case. Consult a California employment law attorney as soon as possible. They’ll assess your situation, guide you through the process, and protect your rights. Acting quickly is essential, as PAGA claims have strict filing deadlines. You don’t have to face this alone.

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Daniel Cohen is the Founder of Consumer Attorneys. Daniel manages the firm’s branding, marketing, client intake and business development efforts. Since 2017, he is a member of the National Association of Consumer Advocates and the National Consumer Law Center. Mr. Cohen is a nationally-recognized practitioner of consumer protection law. He has a we... Read more

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