Attention California Employers: PAGA 3.0—What you need to know about the LWDA’s Proposed PAGA Regulations

On February 6, 2026, the Labor and Workforce Development Agency (LWDA) released proposed regulations to implement changes under the 2024 Private Attorney General Act (PAGA) reform. Among other things, the proposed regulations would standardize the filing process, require factual specificity in PAGA notices, implement safeguards to deter abusive filing practices, increase settlement oversight, and provide greater transparency on the small employer cure process. Read on for highlights of the LWDA’s proposal.

Online PAGA Filing Portal

To streamline the filing process, the proposal would require all documents to be electronically submitted through the online PAGA filing portal using the appropriate links provided.

High-Frequency and Vexatious Filers

To curtail abusive filing practices — including “PAGA notices that are based on templates alleging frivolous, conclusory, or boilerplate violations of the Labor Code” — the proposal would impose heightened requirements for “high-frequency” and “vexatious” filers.

  • High-Frequency Filer: Any attorney or law firm that has filed 200+ PAGA notices in the past year must include with each PAGA notice a cover letter signed by the claimant certifying they personally suffered each alleged violation and are not presenting the claims for an improper purpose. Failure to comply may result in the additional designation as a “vexatious” filer.
  • Vexatious Filer: Any person or attorney who has repeatedly filed PAGA notices that do not comply with legal requirements are subject to a prefiling screening order, which requires the LWDA to review their proposed PAGA notice for compliance with statutory and regulatory requirements before filing.

Administrative Notice Requirements    

To allow the LWDA and employers to more efficiently assess and respond to claims, the proposal would require greater factual specificity in PAGA notices, including:

  • A description of the claimant’s job duties performed during employment;
  • A statement of the facts and theories supporting each alleged violation personally suffered (conclusory or vague allegations without supporting facts particular to the claimant’s circumstances, and summaries or restatements of law will not suffice); and
  • Certification that the claims have legal and evidentiary support.

Greater Settlement Oversight 

Among the provisions impacting the settlement process, the proposal would: 

  • Prevent a claimant from amending a PAGA notice to add new claims after a proposed settlement has been reached;
  • Provide the LWDA with at least 45 days to review proposed settlement agreements; and
  • Require a settling plaintiff to provide notice of the proposed settlement to all individuals with pending PAGA actions against the employer.

Small Employer Cure Procedures 

The proposed regulations would clarify administrative and procedural requirements for parties engaged in the small employer cure process by providing detailed descriptions of the following: 

  • Content required in a cure proposal;
  • Procedure and timeline when the LWDA determines a potentially sufficient cure;
  • Format of a cure conference and party obligations/rights;
  • Procedure and timeline to complete cures;
  • Information required to notify the LWDA of cure completion;
  • Procedure and timeline to dispute a determination of cure completion; and
  • Procedure and timeline for a dispute hearing.

Notably, the proposed regulations also:

  • Specify that a cure proposal is considered a confidential settlement communication; and
  • Clarify that an employer may not invoke cure procedures that were initiated in the past year in response to an earlier PAGA notice alleging the same violations.

Employer Takeaways

The written comment period closed on March 23, 2026. The regulations remain in the proposal stage and may be revised before any final adoption. Pending further developments, employers should continue taking these “reasonable steps” to avoid or address wage-and-hour violations:

  • Conduct proactive payroll audits and take appropriate action, as necessary;
  • Implement, enforce, and distribute legally compliant written wage-and-hour policies;
  • Train supervisors to comply with the Labor Code, and take corrective action if they fail to do so; and
  • Maintain detailed records of all compliance efforts to prove “reasonable steps” were taken.

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