Mediator’s Minute: Examining LWDA’s PAGA Proposed Rulemaking

In June of 2024, California lawmakers enacted significant reforms to California’s Private Attorneys General Act of 2004 (PAGA).  Much has been written about these reforms and litigants have been working through the new requirements as the post-reform cases make their way through the courts.  Now, the LWDA is also weighing in.  On February 6, 2026, the Labor & Workforce Development Agency (LWDA) issued a proposed rulemaking, with the aim of implementing the changes outlined in the PAGA reform legislation.

Per the LWDA’s Notice of Proposed Rulemaking, “[t]he 2024 reforms evince a legislative intent to increase Agency oversight of PAGA and provide more robust early resolution avenues for employers, both with a goal of achieving more timely remedies to make employees whole without the type of protracted and costly litigation that previously has led to criticism of the Act.”  Notice of Proposed Rulemaking, p. 6, available at https://www.labor.ca.gov/wp-content/uploads/sites/338/2026/02/2026-2-6-Ntc_Prop_Rulemaking_LWDA_PAGA-Z2026-0121-03.pdf, citing Sen. Com. on Jud., analysis of Assem. Bill No. 2288 (2023-2024 Reg. Sess.) as amended June 21, 2024, p. 1 [noting bill “increases the role of [LWDA] and better incorporates the available remedies, processes, and outcomes utilized or sought by [LWDA] in its enforcement efforts”].

The proposed rules would add 37 new sections centered around three main themes:

·       Increased notice requirements when initiating a PAGA filing

·       Articulating cure procedures

·       Increasing effective administrative oversight by the LWDA of settlements through reporting requirements

Implementing Increased Notice Requirements

The LWDA identifies several issues with current notice practices, including defective or boilerplate PAGA notices.  The proposed rulemaking, according to the LWDA, is intended to address these concerns and curb what it sees as abusive practices, including excessive filing of PAGA notices.  The rules propose to implement additional requirements for so-called “high-frequency” PAGA notice filers, or those who file 200 or more notices in a 12-month period.  Notice of Proposed Rulemaking at p. 10.  There is also a proposed definition for what the LWDA is calling a “vexatious filer,” which the LWDA defines as any person or attorney who has repeatedly filed PAGA notices that do not comply with legal requirements.  See Proposed Rulemaking § 17415(b)(2).  The Notice includes statistics regarding PAGA notice frequent filers as well.

The Initial Statement of Reasons explaining the proposed changes puts a fine point on these concerns and provides insight into the “red flags” that motivated the proposed rule changes.  In the 125-page statement, the LWDA includes redacted copies of examples of offending PAGA letters which the agency says exemplify “abusive PAGA notice filing practices.”  Initial Statement of Reasons, p. 27, App. C.  In addition, the statement includes redacted copies of letters sent by the LWDA to certain law firms requiring them to file amended PAGA notices.  Id. at App. D.  Together, these documents highlight the LWDA's increasing scrutiny of PAGA notices in the wake of the passage of PAGA reforms. 

Outlining Cure Procedures

The Agency’s stated goal in outlining the cure procedures is fairly straightforward, focusing on transparency and the facilitation of early resolution of PAGA matters.  Many of these implementing regulations, like those in other categories, are primarily focused on the logistics of bringing and pursuing a PAGA claim following PAGA reform, as well as the steps employers may take to cure alleged violations and that the parties together may take to reach early resolution of these matters.   

Administrative Oversight Through Additional Reporting Requirements

The third category highlighted in the Notice of Rulemaking focuses on reporting requirements and increasing administrative oversight of settlement proposals.  Currently, settling PAGA plaintiffs upload proposed settlements to the LWDA’s PAGA portal.  The proposed rulemaking would require additional materials to be uploaded in addition to the settlement proposal, including potentially motions or declarations.  Interestingly, the LWDA notice states that it is aiming to increase the documents required to be submitted along with a proposed settlement to provide “context” as well as notice to other employees with pending PAGA cases.  Following language implying that the notice would serve to enable such employee-plaintiffs to assist the LWDA in evaluating whether the settlement was adequate, fair, and reasonable, the LWDA not only acknowledges, but cites to, Turrieta v. Lyft, Inc. (2024) 16 Cal.5th 664, 696.  Notice of Proposed Rulemaking at p. 7.  Turrieta is the PAGA case that established that PAGA plaintiffs in separate matters do not have a right to intervene to object to a PAGA settlement of another matter.  Some may argue that the proposed rulemaking creates a workaround, enabling a putative intervenor to review the materials and petition the LWDA to object to the settlement.  Query whether such intervenor would be entitled to any attorney fees or costs award should the LWDA object as a result of information supplied by that intervenor. 

Suffice it to say, the proposed rulemaking covers a lot of material.  It provides an interesting window into the priorities of the LWDA.  There is much in the proposed rulemaking that will please both employees and employers, especially the potential for clarity around the policies and procedures created by the 2024 PAGA reforms.  Of course, a proposed rulemaking is just that: a proposal.  The LWDA is likely to receive significant comment on these broad-reaching proposals.  Practitioners will want to keep an eye out for further updates from the LWDA. 

Currently, the written comment period is set to close on March 23, 2026.  The Notice of Rulemaking, Proposed Rulemaking, and Initial Statement of Reasons, along with information regarding how to provide your comments, may be found here: https://www.labor.ca.gov/resources/paga/rulemaking-labor-code-private-attorneys-general-act-of-2004/.

Shireen Wetmore is a mediator specializing in employment matters and can be reached for questions, comment, or booking at www.shireenwetmoremediation.com.  

This Mediator’s Minute is for informational purposes only and does not constitute legal advice.