Employment Class Action Lawsuits

What is an Employment Class Action Lawsuit?

Class action lawsuits are when similarly situated employees collectively come together to sue an employer. This is because oftentimes an employer’s unlawful policies or practices don’t just affect a single employee but harm a large group of employees in a similar way. You may at one point received an email or mail correspondence asking you to opt-into a class action to receive compensation. In sum, class actions can be effective and allow individuals to band together to hold employers accountable for employment and labor code violations.

What Types of Employment Cases Are Well Suited for Class Actions?

Wage and hour violations are the most frequent basis for employment class actions. Wage and hour class actions usually stem from meal and rest break violations, unpaid overtime, employee misclassifications, and inaccurate wage statements. There can also be class actions based on workplace discrimination including disparate impact claims (when a seemingly neutral company policy or practice (e.g., a hiring test, promotion criteria) has a disproportionately negative impact on a group of employees based on a protected characteristic (race, gender, age, etc.) and/or discrimination against a protected group. Lastly, class actions can be brought for WARN Act violations. The Worker Adjustment and Retraining Notification (WARN) Act requires employers of a certain size to provide advance written notice (typically 60 days) of plant closings or mass layoffs.

What is the Class Action Process in California?

Navigating a class action lawsuit is a complex process and difficult to accomplish with the guidance or legal counseling of an attorney. The below is a simplified overview of the steps of the class action process:

  1. Investigation: Attorneys investigate potential widespread violations by an employer.
  2. Filing the Lawsuit: One or more affected employees (class representatives) file a lawsuit on behalf of themselves and all other similarly affected employees.
  3. Motion for Class Certification: The crucial step where attorneys ask the court to formally approve the case to proceed as a class action, based on the requirements (numerosity, typicality, commonality, etc.).
  4. Notice to Class Members: If the class is certified, potential class members are typically notified and given an opportunity to opt out of the class if they wish to pursue their own individual claim.
  5. Discovery: Both Plaintiffs and Defendants gather evidence through document requests, depositions, site inspections, and other legal methods. 
  6. Settlement or Trial: Many class actions are resolved through a court-approved settlement. If no settlement is reached, the case may proceed to trial.
  7. Distribution: If the class action is successful (either through settlement or trial judgment), any recovered funds are distributed to the class members according to a court-approved plan.

Understanding PAGA (Private Attorneys General Act) Claims

California’s Private Attorneys General Act (PAGA) is another tool that allows employees to address widespread Labor Code violations. While distinct from a class action, PAGA claims are often brought alongside or in conjunction with them, especially in wage and hour cases.

  • How Does PAGA Work? PAGA authorizes an “aggrieved employee” to file a lawsuit to recover civil penalties on behalf of themselves, other current or former employees, and the State of California for Labor Code violations. Essentially it allows the aggrieved employee to fill the shoes of the state to enforce labor laws and collect for Labor Code violations. 
  • What are the Penalties and Distributions Under PAGA? If successful, 65% of the recovered civil penalties go to the Labor and Workforce Development Agency (LWDA) for labor law enforcement, and the remaining 35% is distributed among the aggrieved employees. Recent PAGA reforms in 2024 (AB 2288 and SB 92) increased the employee’s share.
  • Procedural Requirements: PAGA claims have specific procedural requirements, including providing notice to the employer and the LWDA before filing a lawsuit.

What to Do If You Believe You Might Be Part of a Class Action or Have a PAGA Claim?

If you suspect your employer’s unlawful practices have affected not only you but also a group of your colleagues, contact our office and speak to an experienced attorney. We understand the complexities of Class Actions and PAGA claims and can help you by providing a free consultation to determine if we are able to represent you and pursue legal action.

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