Protect Your Business From PAGA Exposure — Before a Lawsuit Hits

  • PAGA lets an employee sue for Labor Code penalties on behalf of the State for:

    • Their own violations, and

    • Violations experienced by other employees

    This creates broad exposure across:

    • Meal & rest breaks

    • Overtime & off-the-clock work

    • Pay-stub accuracy

    • Minimum wage compliance

    • Expense reimbursement

    • Timekeeping irregularities

    Because PAGA seeks penalties, not wages, even small issues can escalate quickly.

    • PAGA allows employees to act as “private attorneys general” and pursue penalties on behalf of the State of California.

    • Plaintiffs can file without class certification, making claims faster to file and harder to defeat.

    • In 2024 alone, filings exceeded 10,000+, even after the reform changes.

    • Penalties are split 75% to the State and 25% to employees, incentivizing broad claims.

    • Clean, consistent data for PAGA & class actions

    • Reliable identification of violation types

    • Automated overnight sequence repair & anomaly detection

    • Fast triage for mass punch datasets

    • Output formatted for legal review, mediation, or expert analysis

    • Reduce penalty exposure

    • Strengthen documentation for PAGA safe-harbor

    • Detect issues before employees or attorneys do

    • Build a defensible compliance story

    • Lower risk during audits, settlements, and LWDA submissions

California’s Private Attorneys General Act (PAGA) is one of the most aggressive enforcement mechanisms in U.S. employment law. Even minor technical violations—like a 31-minute meal break, a missing rest period, or a pay-stub typo—can expose employers to stacked civil penalties across an entire workforce.

Scaled Comp helps employers identify, correct, document, and defend against wage-and-hour risks using clean, structured, litigation-ready time-punch analysis.

2024 PAGA Reform: The New 15% Penalty Cap

Under California’s 2024 reforms (AB 228 & SB 92), employers who take “reasonable steps” before violations occur can reduce penalties by up to 85%.

Scaled Comp helps employers prove those reasonable steps with audit trails, timestamped reviews, and objective analysis.

Scaled Comp helps document and support the following:

  1. Stay current on Labor Code changes

  2. Run periodic wage & hour audits

    • Meals, rests, overtime, off-clock exposure

    • Pay-stub compliance (LC 226)

  3. Maintain updated, compliant policies

  4. Train supervisors on timekeeping rules

  5. Correct supervisors who violate policy

  6. Retain proof of each step (training logs, audits, remediation steps)

Penalty reductions depend on totality of the circumstances—company size, resources, severity, and duration of the violation. A violation does not automatically mean the employer failed to act reasonably.

Employer Checklist: “Reasonable Steps” to Reduce Penalties

How Scaled Comp Helps Employers

Our system builds your compliance defense in three ways:

Automated Time-Punch Auditing

  • Reconstructs full shift sequences (IN/OUT, meals, rests, overnights).

  • Detects short meals, late meals, missed meals, rest-break exposure, split shifts, and daily/weekly overtime.

  • Identifies data issues before they become legal issues.

Litigation-Ready Output

  • Cleaned data tabs

  • Violation summaries

  • Risk heatmaps

  • Population-level statistics

  • Full audit log of assumptions & corrections

  • Perfect for attorneys, HR teams, and expert witnesses.

Support for “Reasonable Steps” Compliance

We map your practices to the statutory safe-harbor requirements, helping you demonstrate proactive compliance.

Reduce risk. Prove compliance. Protect your business.

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