On October 2, 2015, Governor Brown signed AB 1506, amending the California Private Attorneys General Act (PAGA), effective as of that date. Before an employee can bring a PAGA claim against an employer for certain wage statement violations, the employer will have an opportunity to cure the violation.
PAGA allows employees to stand in the shoes of the California Attorney General to recover civil penalties through a representative civil lawsuit for violations of certain Labor Code provisions. As amended, PAGA now requires that employees give employers the opportunity to cure certain violations of California Labor Code Section 226a. Before AB 1506, employers did not have the right to cure any violations of Section 226a, which requires specific information to be shown on wage statements, including the start and end date for each pay period and the employer’s name and address. Under AB 1506, employers have the opportunity to cure these two types of violations before an employee may bring a valid PAGA claim.
Specifically, AB 1506 provides:
Right to Cure Certain Wage Statement Violations: Employers have the right to cure violations alleging that wage statements do not show:
- the inclusive dates of the pay period
- the name and address of the legal entity that is the employer
- Timing for Cure: The employee must give written notice of the alleged violation to the employer and the Labor and Workforce Development Agency. The employer will then have the right to cure the violation within 33 calendar days of the postmark date of the notice. The employer shall give written notice by certified mail within that period of time to the aggrieved employee or representative and the Agency if the alleged violation is cured, including a description of actions taken. If the alleged violation is not cured within the 33-day period, the employee may commence a PAGA action.
- Proof of Cure: To prove the violation has been cured, employers must show that the employer has provided a fully compliant, itemized wage statement to each aggrieved employee for each pay period for the three-year period prior to the date of the employee’s written notice of the violation.
- Limitations on Cure: Employers may not exercise the right to cure under AB 1506 more than once in a 12-month period for the same violation or violations contained in the notice, regardless of the location of the worksite.
- Effective Date: AB 1506 is an urgency statute and went into effect immediately.
For the full text of AB 1506, please click here.
Please note that this summary is not intended to constitute legal advice.
If you have questions regarding AB 1506 or other employment laws, please feel free to contact either Kristin Pedersen or Maki Daijogo at Daijogo & Pedersen, LLP through our website, www.dpemploymentlaw.com, or by calling us at 415.924.9400.