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California’s Private Attorneys General Act — the most feared employer liability statute in the state — was partially reformed in 2024 through SB 92 and AB 2288. These reforms were widely covered in business media as a major employer victory. The actual changes were more modest. Understanding what specifically changed, and what remains, is essential for any California employer managing PAGA exposure.
What SB 92 and AB 2288 Changed
The 2024 reforms made three significant modifications to PAGA’s structure. First, they created a “cure” mechanism for certain technical violations — allowing employers to fix specific wage statement errors and other technical violations within 65 days of notice without incurring full per-pay-period penalties. Second, they capped penalties for certain categories at lower levels when the employer had established and implemented reasonable policies to prevent violations. Third, they gave courts more explicit authority to reduce aggregate penalties when the full statutory amount would be disproportionate to the actual harm.
What Didn’t Change
The fundamental PAGA structure is intact. Private attorneys still have standing to file representative actions on behalf of aggrieved employees. The 75/25 split between the state and employees remains. The per-violation penalty structure remains — though with new caps in some categories. The statute of limitations remains. The most aggressive PAGA claims — those involving systematic wage theft, pervasive overtime violations, or large employee populations — are largely unaffected by the 2024 reforms. The cure mechanism helps employers who made inadvertent technical errors; it does not protect employers with systemic violations.
The Practical Impact
For California employers, the 2024 PAGA reforms reduce the most extreme penalty scenarios for technical violations but don’t change the fundamental compliance calculus. The lesson remains unchanged from the May analysis: build accurate wage statement systems, implement proper timekeeping, pay overtime correctly, and provide required meal and rest breaks — because the compliance cost is far lower than the litigation cost. The cure mechanism gives you a second chance on technical errors. Use it if you qualify.
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