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News & Press: Legislative Issues

Important Message Regarding PAGA Claims

Wednesday, August 2, 2017   (0 Comments)
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PAGA (Private Attorneys General Act) claims can be filed by any employee or their attorney, on behalf of all employees. A recent example of a case shows how impactful the penalties and fees can be.

 

An employee of Attic Pros, an Oakland based attic cleaning and restoration contractor; filed a PAGA claim with the state. In this case, the California Labor Commissioner's Office investigated. Their findings were as follows:

  • Attic Pros tried to classify 119 workers as independent contractors, when they were employees.
  • The workers were paid a flat amount per day, often working 10-14 hours, six days a week.
  • The calculations were over a 32 month period, July 2014 to March 2017.
  • The total of unpaid wages for overtime and not paying minimum wage at times, was $512,730; or approximately $4,309 per worker.
  • The penalties on top of the wages was $3,078,350; or 6 times the unpaid wages.
  • Attic Pros likely will also be paying payroll taxes and additional workers' compensation premiums.
  • It is a reminder of how important it is to do our best to be in full compliance with all wage and hour laws.
  • You can see a copy of the DIR Press Release here

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