Seyfarth Synopsis: California
employees who are denied adequate wage statements
("paystubs") can sue for penalties. Paystub penalty
plaintiffs generally must prove they suffered an "injury"
caused by the employer's "knowing and intentional
failure" to provide an adequate paystub. But now the Court of
Appeal, Lopez v. Friant & Associates, LLC, holds that
penalty-seeking employees can circumvent these proof requirements
by suing for paystub penalties under PAGA. It remains unclear if
PAGA plaintiffs are entitled to the default penalties that PAGA
provides or instead must be satisfied with certain pre-existing
civil penalties.
PAGA Background
The California Legislature, with its extremely dour view of
employers, has promulgated hundreds of Labor Code provisions that
closely regulate virtually every aspect of the employment
relationship, all with the stated goal of protecting employees
against abusive employers. And, convinced that too many employers
get away with