Governor Signs Bill Allowing Employers to Avoid Certain PAGA Claims

By Jennifer Lutz

On October 2, 2015, Governor Jerry Brown signed AB 1506 (Hernandez) into law. The bill, which amends sections 2699, 2699.3, and 2699.5 of the Labor Code (which encompasses the Private Attorneys General Act (“PAGA”)) took effect immediately upon the Governor’s signature. PAGA allows an employee to file a representative action against an employer for any violation of the Labor Code, including Labor Code section 226, and subjects at employer to statutory penalties and attorneys’ fees. Labor Code section 226 sets forth categories of information that must be included in an itemized wage statement.

This new law will provide an employer 33 days to cure an alleged violation of Labor Code section 226(a)(6) (the inclusive dates of the pay period for which the employee is paid) and (a)(8) (the name and address of the legal entity that is the employer). If the employer cannot cure the violation, then the employee still would be permitted to file a civil action.

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