How are PAGA penalties calculated in California?

PAGA penalties in California are generally calculated per pay period per affected employee for Labor Code violations, often starting at $100 per period with higher tiers for subsequent violations or certain conduct. AB 2288 and cure rules can reduce civil penalties when employers document reasonable steps. Easeworks models exposure with counsel-ready assumptions, not guaranteed outcomes.

File: PAGA-PENALTIES AB 2288 / SB 261

California PAGA penalty structure

How California PAGA penalties are calculated, and reduced.

Per-period civil rates, meal/rest premiums, wage-statement exposure, and the AB 2288 caps that apply when reasonable steps are documented before a notice, or within 60 days after one arrives.

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California employer reviewing PAGA penalty exposure figures

PAGA Lens

Find the gaps a PAGA claim would start from

Answer questions about how you pay and track your California employees. You get a report that shows where your pay practices, your records and your reasonable-steps file have gaps, in the same categories a payroll audit tests.

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1 Answer the questions
We ask how you pay, track time and document your steps.
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3 Open your email
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4 Read it, then choose a next step
Request a PAGA audit or book a 20-minute review. We ask a few more questions only then.

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Civil penalty tiers

AB 2288 reduction framework

Statutory caps depend on whether reasonable steps began before notice, within 60 days, or not at all.

AB 2288 § 2699(g) 85% reduction

Proactive (Before Notice)

$15 per employee per pay period

Employer took all reasonable steps to comply before receiving a PAGA notice (15% cap on the penalty sought)

AB 2288 § 2699(h) 70% reduction

Reactive (Within 60 Days)

$30 per employee per pay period

Employer began all reasonable steps within 60 days of receiving PAGA notice (30% cap on the penalty sought)

LC § 2699(a), (f) 0% reduction

No Action (Default)

$100 per employee per pay period

Default civil penalty per aggrieved employee per pay period for most violations

LC § 2699(f)(2) N/A reduction

Elevated Penalty

$200 per employee per pay period

Prior unlawful finding within 5 years, or court finds malicious, fraudulent, or oppressive conduct

Exposure categories

What adds up beyond PAGA civil penalties

PAGA-related penalty and damages categories
Category	Statute	Per violation	Lookback	AB 2288 reducible	Notes
PAGA Civil Penalties	LC § 2699	$100 default per pay period per aggrieved employee ($200 only if elevated)	1 year	Yes	The core PAGA civil penalty. Caps at 15% or 30% of the penalty sought when all reasonable steps apply. Does not erase premiums or other statutory damages.
Meal/Rest Break Premiums	LC § 226.7	1 hour of pay per missed/short break per day	3 years	No	Not technically a 'penalty.' It is premium pay. Calculated based on the employee's Regular Rate of Compensation, not just base hourly.
Wage Statement Penalties	LC § 226(e)	Up to $4,000 per employee (aggregate)	1 year (penalties) / 3 years (damages)	No	Nine required items must appear on every pay stub. Missing any one creates exposure for every employee every pay period.
Waiting Time Penalties	LC § 203	Daily wage rate × up to 30 days per terminated employee	3 years	No	Applies only when final pay is not timely issued to a separated employee. Involuntary = same day. Voluntary with 72hr notice = last day. Does not apply to your active workforce.
SB 261 Treble Damages	SB 261 (2026)	3× unpaid wages after 180 days	Post-judgment	No	New in 2026: If a wage judgment remains unpaid after 180 days, the entire unpaid amount triples. This turns manageable numbers into existential threats.
Attorney Fees	LC § 2699 / Laffitte	Typically 30-33% of the negotiated settlement fund	N/A	No	Fees come out of the settlement fund the parties negotiate, not out of the maximum a plaintiff asserts. California courts often use a 30% benchmark and cross-check with lodestar. Average PAGA court fee award is about $370,000 across cases that average thousands of employees.

Calculator

Compare $100 / $30 / $15 scenarios

Illustrative civil-penalty math only — does not include premiums, waiting-time, or attorney fees.

California employees: 100 Pay periods: 26

No action ($100) $260,000

Reactive ($30) $78,000

Proactive ($15) $39,000

FAQ

Penalty questions California employers ask

01 How much are PAGA penalties per violation?

Under AB 2288, the default PAGA civil penalty is $100 per aggrieved employee per pay period. The $200 rate is an exception for a prior unlawful finding within five years, or when a court finds the conduct was malicious, fraudulent, or oppressive. Employers who took all reasonable steps before notice can face no more than 15% of the penalty sought (about $15 on a $100 base). Employers who begin reasonable steps within 60 days of notice can face no more than 30% (about $30 on a $100 base).

02 How are PAGA penalties calculated?

Multiply the applicable per-period rate by the number of aggrieved employees by the number of pay periods in the one-year PAGA lookback. Total case exposure also includes meal/rest premiums (3-year lookback), wage statement penalties, and waiting-time penalties for separated employees. Plaintiff attorney fees are typically 30-33% of the negotiated settlement fund, not a percentage of the asserted maximum.

03 Can PAGA penalties be reduced?

Yes. Under AB 2288 (2024 reform), PAGA civil penalties can be capped at 15% of the penalty sought if the employer demonstrates all reasonable steps before receiving a PAGA notice, or at 30% if those steps begin within 60 days of notice. That is where the 85% and 70% reduction figures come from. The caps apply to civil penalties only. They do not erase premiums, wage statement damages, or section 203 waiting-time amounts.

04 What is the SB 261 treble damages provision?

SB 261 (effective 2026) provides that if a wage judgment remains unpaid after 180 days, the entire unpaid amount triples (3× multiplier). This applies to all wage judgments, not just PAGA. It creates urgency for employers to resolve claims quickly. A $500K judgment becomes $1.5M if not paid within 180 days.

05 What is the total lookback period for a PAGA lawsuit?

The total effective lookback is often described as up to 4 years: PAGA civil penalties cover 1 year, underlying wage claims (meal breaks, overtime, etc.) go back 3 years, and the Unfair Competition Law (UCL) claim that is almost always filed alongside PAGA can add a 4th year. A forensic audit should cover the full window needed for the claims actually noticed.

06 Who receives the PAGA penalty money?

For PAGA notices filed on or after June 19, 2024, civil penalties are split 65% to the Labor and Workforce Development Agency (LWDA) and 35% to the aggrieved employees. Notices filed before that date still use the prior 75% LWDA / 25% employee split. Plaintiff attorney fees, litigation costs, administrator fees, and any named-plaintiff enhancement typically come out of the gross settlement fund before employees are paid.

Cluster

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$15 beats $100 — if you can prove reasonable steps.

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