What Is the Potential Payout Settlement for a PAGA Case?

What Is the Potential Payout Settlement for a PAGA Case

When your employer harms you by violating a California labor law, you have the choice of filing a Private Attorneys General Act (PAGA) claim against it. You can recover financially in a PAGA claim through a settlement from your employer. And if you are wondering about the average PAGA settlement amount, the better question to ask is what you might recover under the specific facts of your case. Our experienced employment law attorneys at Bibiyan Law Group, PC, can give you an accurate estimate of the PAGA settlement payment you could likely receive from your claim. We also have a proven track record of recouping substantial payouts for our clients and can maximize your legal remedies. Reach out to us to speak with an attorney!

A Brief Review of PAGA Claims

California has many labor laws that protect employee rights, including safety rules, requirements for wage payment and breaks, and restrictions against unethical or discriminatory hiring practices. If an employer fails to comply with one of California’s many employment laws, it could be liable for damages and penalties in a lawsuit or administrative complaint through the California Department of Fair Employment and Housing or the Labor Commissioner. An employee can also choose to sue their employer through a PAGA complaint with the Labor and Workforce Development Agency (LWDA)

To maintain a PAGA complaint, you must be an “aggrieved employee,” which means you are an employee who was affected by your employer’s failure to comply with labor law. Unlike other types of legal claims that you can initiate against an employer for its unlawful practices, the compensation you can receive in a PAGA claim is not based on your wages or your financial losses. The Private Attorneys General Act is a way for employees to act on behalf of the state or their fellow employees to enforce the state’s labor laws. And because of the nature of a PAGA claim, the legal remedy available is a penalty payment from the offending employer

The Kind of PAGA Settlement Payment You Can Receive

The average PAGA settlement for a case like yours could be hundreds or thousands of dollars. For example, in Acevedo v. CashCall, Inc., a group of aggrieved employees received $25,000 in PAGA penalties to split among themselves. However, this does not mean that you will recover the same amount of money in your case. 

What you can receive in a PAGA lawsuit depends on how many violations your employer committed and how many employees were harmed by your employer’s actions. Under the law, employers subject to PAGA complaints are liable for the following:

  • If an employer does not employ one or more individuals during the time it commits a legal violation, the employer must pay a $500 penalty; and 
  • If an employer has one or more employees during the time it commits a legal violation, the employer must pay $100 for each aggrieved employee per pay period for the first violation and $200 per aggrieved employee per period for each additional violation. 

However, these penalties add up for your employer; 75% of the total amount goes to the LWDA, and the remaining 25% is paid to you and your fellow aggrieved employees

If your employer has a large workforce and has committed a significant number of violations, you could be entitled to a substantial payout under PAGA. Speaking to one of our knowledgeable employment attorneys about your PAGA claim is crucial to maximizing your recovery. Our attorneys can identify all the ways your employer has failed to comply with the law to help ensure you receive as much compensation as possible. 

Contact Bibiyan Law Group Today

Bibiyan Law Group is an award-winning, boutique employment law firm that fights aggressively for the rights of workers all over California. We are skilled, passionate, efficient, and effective. In fact, since opening, we have recovered millions for our clients each year. When you need an attorney with thorough knowledge of employment law claims and the best ways to hold your employer financially accountable for its misdeeds, you should give us a call. You can call us at 310-438-5555 or reach out to us online for a free consultation.

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David Bibiyan is a distinguished attorney at Tomorrow Law, renowned for his expertise in employment law. With a strong focus on representing employees in various workplace disputes, he has become a trusted advocate for those facing discrimination, harassment, wrongful termination, and wage and hour issues. Bibiyan’s approach is characterized by a deep understanding of both state and federal employment laws, ensuring that his clients receive knowledgeable and effective representation. His commitment to justice is evident in his dedication to each case, where he meticulously works to secure the best possible outcomes for his clients. Bibiyan’s reputation is built on a foundation of successful case resolutions, marked by his skillful negotiation and, when necessary, aggressive litigation strategies. His work at Tomorrow Law reflects a genuine passion for defending workers’ rights and promoting fair employment practices.

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