On Sept. 12, 2019, the California Supreme Court in ZB, N.A. v. Superior Court of San Diego County (Lawson) delivered a victory for California employers, clarifying that a plaintiff bringing a Private Attorneys General Act (PAGA) action may not recover as a “civil penalty” the “wages” referenced in Cal. Labor Code section 558, and thereby limited the monetary recovery workers can seek under PAGA.

PAGA allows a plaintiff-employee to seek civil penalties on behalf of the plaintiff and other “aggrieved employees” for a Labor Code violation, if the Labor Commissioner first receives proper notice of the claim and declines to take action on it. Among the Labor Code sections often relied on by plaintiffs in such cases is Labor Code section 558, which enables the Labor Commissioner to collect $50 and $100 in civil penalties against employers that unlawfully deny overtime compensation to workers, and allows the Commissioner to recover “an amount sufficient to recover underpaid wages.” Though PAGA provides that amounts recovered by a private litigant are to be distributed 75% to the state and 25% to “aggrieved employees,” section 558 provides that any wage-based recovery under section 558 goes entirely (100%) to the workers.

Click here for the full GT Alert on the CA Supreme Court decision ZB, N.A. v. Superior Court of San Diego County (Lawson).

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Photo of Michael Wertheim Michael Wertheim

Michael Wertheim represents employers in workplace matters, including employment litigation, wage and hour class actions, California Labor Code actions, Private Attorneys General Act actions, and traditional labor law. He also represents companies in a wide range of employment disputes in both state and…

Michael Wertheim represents employers in workplace matters, including employment litigation, wage and hour class actions, California Labor Code actions, Private Attorneys General Act actions, and traditional labor law. He also represents companies in a wide range of employment disputes in both state and federal court, including cases alleging discrimination, harassment, wrongful termination, and retaliation. In addition, Michael handles labor arbitrations, unfair labor practice charges, and other labor proceedings before the National Labor Relations Board and Public Employment Relations Board.

Photo of Ashley M. Farrell Pickett Ashley M. Farrell Pickett

Ashley M. Farrell Pickett defends companies in complex employment class and representative litigation in both state and federal courts throughout the country. She has deep experience representing large and small employers alike at all stages of high stakes litigation—from pre-trial demands through trial…

Ashley M. Farrell Pickett defends companies in complex employment class and representative litigation in both state and federal courts throughout the country. She has deep experience representing large and small employers alike at all stages of high stakes litigation—from pre-trial demands through trial or arbitration, settlement, and on appeal.

Ashley has litigated a wide range of employment claims facing companies, including wage and hour compliance, discrimination, retaliation, sexual harassment, leaves of absence, employee accommodations, personnel policies, and employment agreements. She is also skilled in advising employers on various issues to ensure compliance and avoid potentially costly litigation before it can arise.

Photo of Mark Kemple Mark Kemple

Mark D. Kemple has broad trial experience in many areas of the law, including employment class and individual litigation, consumer class litigation, false advertising, and unfair competition, where he focuses on the defense of wage/hour class actions and individual employment claims. He is…

Mark D. Kemple has broad trial experience in many areas of the law, including employment class and individual litigation, consumer class litigation, false advertising, and unfair competition, where he focuses on the defense of wage/hour class actions and individual employment claims. He is Co-Chair of the firm’s Labor & Employment Wage & Hour Class and Collective Action Litigation practice and leads the Southern California Labor & Employment Practice. Mark has handled disputes for companies of all sizes, and has tried numerous lawsuits and arbitrations throughout the United States. He has argued appeals in three federal circuits and several state courts of appeal, including in the California Supreme Court.