$17 Million Labor Code Private Attorneys General Act (PAGA) Claim Settled for a Fraction of Exposure

Court: United States District Court, Central District of California

A large fast food chain restaurant faced a potential $17 million PAGA penalty for omitting the beginning date of the pay period from its wage statements. After defendants filed motions for judgment on the pleadings and for summary judgment attacking the constitutionality of PAGA and arguing that PAGA penalties should not be imposed for a harmless mistake, plaintiffs agreed to settle their claims for a fraction of the potential award, on favorable terms to defendant.