PAGA penalty exposure calculator

A PAGA claim is priced per employee, per pay period, per violation, which is why a small break problem becomes a large number. Enter your facts to estimate the civil penalty exposure and see how much the 2024 reform caps save an employer that fixes problems before a notice arrives.

How the estimate works

Exposure is the number of aggrieved employees, times the pay periods in the one-year lookback, times the penalty per pay period, times the number of distinct violations. The 2024 reform (AB 2288 and SB 92) sets these rules for PAGA notices filed on or after June 19, 2024:

• The default penalty is $100 per aggrieved employee per pay period. The $200 rate applies only after a prior finding against the same practice within five years, or conduct a court finds malicious, fraudulent or oppressive.
• An isolated, nonrecurring violation that lasted less than 30 days or four pay periods is capped at $50.
• A wage statement error where the employee could still determine the correct information is capped at $25.
• Employers that pay weekly have penalties cut in half.
• An employer that took all reasonable steps to comply before receiving a notice or records request has penalties capped at 15 percent; one that takes them within 60 days after a notice is capped at 30 percent.
• Recovered penalties are split 65 percent to the state and 35 percent to the aggrieved employees.

Reasonable steps include periodic payroll audits and acting on the results, lawful written policies, supervisor training, and corrective action with supervisors. That list is what a compliance check-up builds.

What the estimate leaves out

Unpaid wages and premiums owed for the underlying violation, waiting-time penalties, interest and the employee’s attorney fees are separate and often larger. A court can also reduce penalties below the calculated figure. The most common source of PAGA claims is covered in meal and rest breaks and PAGA.

About these numbers. This is a planning estimate from the statutory penalty rates, not a prediction of any case outcome and not legal advice. If you have received a PAGA notice, talk with an employment attorney now; the 60-day window for the 30 percent cap runs from the notice date. See the terms.