PAGA Compliance Checklist

First meal break provided before end of 5th hour of work

LC § 512(a) — must begin no later than 4:59 into shift

Second meal break provided before end of 10th hour

Required for shifts exceeding 10 hours

Employees are fully relieved of all duties during meal breaks

On-duty meal periods must have written agreement and be revocable

10-minute rest breaks provided for every 4 hours (or major fraction)

Must be paid time; employer cannot require employees to stay on premises

Meal break waivers are signed and on file (when applicable)

Only valid for shifts of 6 hours or less (first meal) or 12 hours or less (second meal)

Premium pay of 1 hour at regular rate issued for missed breaks

LC § 226.7 — premium must appear on wage statement

Time records accurately capture start/end of meal breaks

Rounding policies that consistently shorten breaks create liability

Gross wages earned listed accurately

Must reflect all compensation including overtime, bonuses, commissions

Total hours worked shown (for non-exempt employees)

Must match timekeeping records exactly

Number of piece-rate units and rate (if applicable)

Required for any piece-rate compensation

All deductions itemized

Each deduction must be listed separately with description

Net wages paid shown correctly

Must equal gross minus all deductions

Pay period dates (inclusive) listed

Start and end dates of the pay period

Employee name and last 4 of SSN (or employee ID) included

Full SSN on pay stubs creates separate liability

Employer legal name and address printed

Must be the legal entity name, not just a DBA

Hourly rates and hours worked at each rate shown

Overtime, double-time, and regular rates must be listed separately

Daily overtime (1.5x) paid for hours 8–12

California requires daily OT — federal law only requires weekly

Daily double-time (2x) paid for hours beyond 12

Also applies to hours beyond 8 on the 7th consecutive day

Weekly overtime (1.5x) paid for hours 40+

Cannot duplicate with daily OT — use the higher calculation

7th consecutive day premium applied (1.5x first 8 hrs, 2x after)

Based on the employer's defined workweek

Regular Rate of Compensation (RRC) correctly calculated

Must include bonuses, shift differentials, commissions — not just base hourly

Alternative workweek schedules properly adopted (if applicable)

Requires secret ballot election, DLSE filing, and specific notice requirements

Time rounding policies reviewed for systemic bias

Rounding is legal only if it is neutral over time — not if it consistently benefits the employer

All exempt employees meet salary threshold ($66,560/yr in 2024)

Must also meet duties test for administrative, executive, or professional exemption

Exempt employees pass the duties test (not just salary)

Spending >50% of time on non-exempt duties defeats the exemption

Independent contractors pass the ABC test (AB 5)

All three prongs (A, B, C) must be met — failure on any = employee

Job descriptions accurately reflect actual duties performed

Mismatch between description and reality creates classification exposure

No exempt employees performing substantial non-exempt work

Common issue: managers who spend most of their time on production tasks

Involuntary terminations: final pay issued same day

LC § 201 — includes all earned wages, accrued PTO, and commissions

Voluntary resignations with 72+ hours notice: final pay on last day

LC § 202 — if less than 72 hours notice, employer has 72 hours from resignation

All accrued but unused PTO/vacation paid out at final rate

California does not allow 'use it or lose it' policies for vacation

Waiting time penalties calculated and exposure assessed

LC § 203 — up to 30 days of daily wages as penalty per terminated employee

Final pay includes all earned commissions and bonuses

Commissions must be paid when 'earned' per the commission agreement terms

Time records retained for minimum 4 years

PAGA 1yr + wage claims 3yr + UCL 1yr = 4-year lookback window

Electronic timekeeping system captures actual punch times

Systems that auto-round or auto-adjust create forensic liability

Employees cannot be clocked in before or after actual work

Off-the-clock work exposure — includes pre-shift meetings, post-shift cleanup

Payroll records match timekeeping data

Discrepancies between time system and payroll are red flags in litigation

Split-shift premiums calculated and paid when applicable

Required when break between shifts exceeds 1 hour and total daily pay < min wage × hours + 1 hour