Under PAGA, California's Private Attorneys General Act, employees recover 35% of civil penalties when notice was filed on or after June 19, 2024. For earlier notices, the employees' share is 25%, paid pro rata after court-approved deductions. Kelley Drye reports the current 65-35 state-employee split in its PAGA reform analysis. A Santa Clara County Superior Court tentative ruling keeps the 75-25 split for cases with notice filed before June 19, 2024.
Official resources:
- Read the official notice from Ca — Use this primary source to verify the official announcement.
- Read the official notice from Ca — Use this primary source to verify the official announcement.
Table of Contents
- Why the filing date controls your share
- How your individual payment is figured
- What gets subtracted before you are paid
- Who qualifies to share
- What to verify about your claim
Why the filing date controls your share
For PAGA notices filed on or after June 19, 2024, California's 2024 reforms allocate 65% of recovered penalties to the LWDA and state. The remaining 35% goes to aggrieved employees. Kelley Drye ties that change to AB 2288 and SB 92.
Cases with notice filed before that date keep the old division. The state receives 75% and employees share 25%. On a $100,000 penalty fund, that date changes the employees' pool from $25,000 to $35,000 before deductions.
How your individual payment is figured
The default penalty is $100 per aggrieved employee per pay period. Mondaq explains the higher $200 rate in its guide to the 2024 reforms applies only after a prior agency or court finding on the same policy within five years, or for malicious, fraudulent, or oppressive conduct.
Your check is not an equal share of that pool. A court-filed settlement agreement describes the pro rata method in the amended PAGA settlement terms. The employees' percentage is divided by all qualifying pay periods, then multiplied by your own qualifying pay periods.
What gets subtracted before you are paid
Employees do not receive the gross settlement amount. Fees, litigation costs, a representative payment, and administration costs come out first after court review.
One Alameda County order approved these deductions from a $91,000 settlement, detailed in the court approval order. The approved items show what can reduce the penalty fund.
- attorney's fees up to $27,300
- litigation costs of $14,761.11
- representative enhancement of $5,000
- administration costs of $4,000
Who qualifies to share
Only workers who personally suffered each alleged violation can share in that violation's recovery. Coverage is also limited to violations within the one-year limitations period.
That limit means job title alone does not qualify you. You must match the violation, the employer policy, and the time window stated in the settlement.
What to verify about your claim
Every PAGA settlement must go to the LWDA for review. A superior court must then approve it as fair, adequate, and reasonable, according to Kelley Drye and the state DIR filing page.
Check the notice date, the violations covered, and your pay periods in the covered period. Compare your credited pay periods to the settlement's total before estimating your payment.