The California Labor and Workforce Development Agency (LWDA) has issued an extensive notice of proposed rulemaking that—if adopted—will reshape Private Attorneys General Act (PAGA) practice. For employment practitioners, the proposed regulations provide a more detailed administrative framework. The proposed rules operationalize the 2024 legislative reforms (AB 2288 and SB 92), clarify notice and cure procedures, and establish new reporting and oversight obligations for litigants.

Context: Why These Regulations Now?

PAGA has long been criticized for its minimal administrative oversight and the prevalence of boilerplate, high‑volume filings. The LWDA reports receiving 8,846 PAGA notices in FY 2024-2025, with a small group of firms and attorneys accounting for a disproportionate share. The agency notes that many notices rely on templates that repeat conclusory allegations, undermining the statutory goal of enabling LWDA to assess the seriousness of violations and determine whether to investigate or prosecute.

The 2024 legislative reforms intentionally expanded LWDA oversight, reshaped standing rules, and broadened pre‑litigation cure opportunities, especially for smaller employers. The proposed regulations aim to reduce frivolous, duplicative, or insufficiently supported filings. At bottom, the regulations allow for employers and the LWDA to better understand the alleged labor code violations before class counsel initiates fulsome and costly litigation.

Standardized PAGA Notice Requirements: Greater Specificity Required

Under proposed section 17420 (and parallel provisions for health and safety cases under section 17450), an employee’s PAGA notice must include:

• Background information about employment (dates, positions, work locations).
• A specification of each Labor Code provision allegedly violated.
• Facts and theories supporting each violation, sufficiently detailed so LWDA and the employer can “intelligently assess” the allegations.
• The calculation and basis for the civil penalties sought.
• A certification—signed by both the employee and counsel—that the allegations have legal and evidentiary support and are not being asserted for an improper purpose.

LWDA will also publish mandatory forms to standardize these notices.

Post‑2024 reforms, employees generally may only bring PAGA claims for violations they personally suffered within the past year. The new regulations reinforce this limitation by prohibiting plaintiffs from asserting violations or theories not previously included in a valid notice without proper amendment. These new requirements will help reduce “umbrella” notices asserting dozens of unrelated violations.

High-Frequency and Vexatious Filer Designations

To address boilerplate filings, proposed section 17415 creates two new classifications:

High‑Frequency Filers
Defined as attorneys or firms filing 200+ PAGA notices within a 12‑month period. These filers must include supplemental certifications confirming:

• The employee has personally reviewed the notice.
• The allegations are supported and not intended to harass or annoy.

Vexatious Filers
After notice and an opportunity to be heard, LWDA may designate an attorney, firm, or individual as a vexatious filer if they repeatedly submit:

• Non‑compliant notices
• Frivolous allegations
• Notices intended to burden or harass

Vexatious filers will be subject to prefiling screening, and their notices will not be accepted until LWDA confirms compliance.

This mirrors Code of Civil Procedure section 391 et seq. but is tailored to the PAGA context.

Expanded Administrative Cure Processes

The 2024 reforms significantly expanded opportunities to cure PAGA violations before litigation. The proposed regulations provide detailed procedural guidance for both cure pathways.

“Small Employer” Cure Process (Under 100 Employees)—Sections 17430–17439.5
This is the more robust cure framework, covering many of the most frequently litigated PAGA claims, including:

• Meal and rest periods
• Overtime
• Business expense reimbursement
• Other wage‑and‑hour violations

Key highlights:

• Cure proposals must be submitted within 33 days of receiving the PAGA notice.
• Cure proposals are confidential settlement communications.
• A process whereby the LWDA may conference with the employer on a written cure plan. This process may become a critical early‑resolution tool in high‑exposure or technical violation cases.

Wage Statement Cure Process—Sections 17440–17443
This applies to violations of Labor Code section 226(a) only and is streamlined:

• Employer serves a cure notice outlining corrective action.
• Employee may dispute the cure within the prescribed period.
• LWDA must evaluate sufficiency and may allow additional time to correct defects.

Importantly, employees cannot commence litigation while the cure review is pending.

New Rules Governing Investigations by the Labor Commissioner and Cal/OSHA

Where LWDA (through DLSE or Cal/OSHA) elects to investigate:

• LWDA must notify the parties by certified mail, identifying allegations and the investigation period.
• DLSE may issue interrogatories, subpoenas, record inspection demands, and conduct interviews.
• If DLSE issues a citation or files an enforcement action, the employee is barred from initiating a PAGA action on the same violations.

For health and safety claims, Cal/OSHA’s investigation timelines and processes are now spelled out, giving clearer guardrails for practitioners advising on workplace safety PAGA exposure.

Litigation Reporting and Settlement Oversight—Greater Scrutiny

Sections 17460–17463 greatly expand reporting obligations for plaintiffs and increase the agency’s role in monitoring litigation.

Plaintiffs must submit to LWDA:

• Complaints and amended complaints
• All orders awarding or denying civil penalties
• Judgments
• Proposed settlement agreements, along with:
  • Motions for approval
  • Supporting declarations
  • Any other documents submitted to the court
  • Notices to other employees with pending PAGA actions against the same employer

LWDA must receive at least 45 days to review a proposed settlement.

These rules respond to judicial criticism that LWDA could not meaningfully evaluate settlements when only the agreement was provided. The new requirements aim to ensure settlements are “adequate, fair, and reasonable,” particularly where multiple PAGA actions involve the same employer.

Impact on Employers, Employees, and Practitioners

For Employers:

• Clearer avenues for early resolution.
• More robust opportunities to cure violations and avoid litigation.
• Increased predictability and transparency in the pre‑litigation phase.

For Employees and Plaintiffs’ Counsel:

• Greater burden at the notice stage—generic templates will no longer suffice.
• More risk of prefiling scrutiny for high‑volume firms.
• Limitations on adding new claims after settlement discussions begin.

For Defense Counsel:

• Opportunities to challenge insufficient notices.
• More structured frameworks for resolving claims early.
• Enhanced LWDA oversight may help reduce global exposure where multiple PAGA suits exist.

Overall, the proposed regulations aim to reduce the volume of meritless claims, promote early resolution, and restore LWDA’s central oversight role.

Conclusion

The LWDA’s proposed regulations represent a significant administrative restructuring in PAGA’s 20‑year history. Employment attorneys—on both sides of the bar—should prepare for more detailed notice requirements, new certifications, expanded cure opportunities, and more rigorous settlement oversight. Public comments are due March 23, 2026.

Reprinted with permission from the March 16, 2026 issue of The Recorder © 2026 ALM Media Properties, LLC. Further duplication without permission is prohibited. All rights reserved.

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