actions have gotten out of hand, and it was designed to try to get a handle on the scope of damages that could be pursued, according to Pungprakeati. “We were excited about these reforms being passed last year in an effort to reduce PAGA lawsuits that are being filed. Reform was meant to curtail it.” Being in compliance with the labor code should be immensely important to employers. “If they make sure their practices are in compliance, they can stop the bleeding,” says Brown. “We can get in there and efficiently diagnose the issues and save them from major exposure.” Costs of litigation could bankrupt companies California is the most protected state in the nation for employees, says Pungprakeati, and the legislature adds more and more laws every year. “A smart employer will have counsel on hand who they can go to for those difficult questions, along with smart human resources professionals.” There is a large value to settle instead of trying to defend oneself in litigation, she adds. “It’s going to cost employers to not only pay damages but also pay their attorney fees, along with the plaintiff’s attorney fees if they go through trial and are found liable. If an employer pushes this kind of litigation into trial, they can be facing potentially hundreds of thousands of dollars in attorney fees. We have to explain all this to our clients, and they are gobsmacked by the realities of the cost of litigation.”
Brown says one of her clients made one technical mistake— not out of any malicious intent— that triggered a PAGA action. “And the settlement figure demanded by the plaintiff in that case was a nonfeasible amount for the client. What’s ironic is the employee who is trying to pursue
these employee rights may make hundreds of their fellow employees lose their jobs if a company goes under because of the cost of litigation.” For employers, says Pungprakeati, the tactical use of an attorney can avoid huge defense fees and liability down the road. “Things like meals and rest breaks—that’s a good one for employers to immediately focus on to get right.” g Kari Brown
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August 2025
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