For over two decades, the Private Attorneys General Act (PAGA) has been governed almost exclusively by the statutory text of Labor Code § 2698 et seq. and a rapidly evolving body of case law. Despite its massive impact on California’s legal landscape, the Labor and Workforce Development Agency (LWDA) has never issued formal regulations in the California Code of Regulations to govern the process—until now.
On February 6, 2026, the LWDA published a set of proposed regulations that, if adopted, will represent the first comprehensive administrative framework for PAGA. These rules appear aimed at increasing transparency, curbing “assembly-line” litigation, and addressing the “reverse auctions” that have long frustrated both the courts and the Agency. Here is a breakdown of the most significant changes proposed in the rulemaking package.
1. New Filing Requirements and “Rule 11” Style Accountability
The proposed regulations would do away with the informal, letter-based notice system by requiring claimants to use a standardized LWDA form filed through the Online PAGA Filing Portal. Instead, plaintiff’s attorneys will be required to file PAGA notices using the prescribed “New PAGA Claim Notice” form, and any amendments through the “Amended PAGA Claim Notice” link.
Crucially, the new form requires:
- A short description of the employee’s job duties and work performed, along with the employee’s position/title, dates of employment, and work location.
- A precise listing of the Labor Code sections allegedly violated and, for each alleged violation, the specific Labor Code sections providing the civil penalties sought.
- A short and plain statement of the facts and theories supporting each alleged violation personally suffered by the claimant, with conclusory or purely legal allegations expressly deemed insufficient.
- A Certification of Merit: In a move that incorporates a certification modeled on CCP § 128.7, the claimant or representative must sign the notice and certify, to the best of their knowledge after reasonable inquiry, that the claims are not presented for an improper purpose, have legal support, and have evidentiary support or are likely to have evidentiary support after further investigation.
2. The “High-Frequency” and “Vexatious” Filer Designations
The LWDA is looking to track and regulate high-volume PAGA “mills.”
- High-Frequency Filers: Any attorney or firm that has filed 200 or more PAGA notices within the prior 12‑month period will be designated as a “high‑frequency filer,” with certain nonprofit legal aid organizations expressly excluded from this definition. These filers must include a specific cover letter in bold, at least 12‑point font disclosing their high‑frequency status with each notice, and the claimant must personally sign a certification that the notice accurately describes the violations they believe they personally suffered and that the notice is not presented for an improper purpose.
- Vexatious Filers: The Agency proposes a “vexatious filer” designation that could subject a person or attorney—and, in some circumstances, their law firm—to a prefiling screening order. Much like vexatious litigants in civil court, these filers would need the Agency to screen and accept a proposed PAGA notice for compliance with statutory and regulatory requirements before it is deemed filed, with tolling of certain limitation periods during the screening window and a process to seek removal of the designation after a minimum period.
3. Curbing “Reverse Auctions” and Post-Settlement Amendments
The LWDA is moving to prevent parties from resolving PAGA claims “under the radar” to the detriment of other pending actions.
- Mandatory Search for Overlapping Cases: Settling plaintiffs will have an affirmative duty to search the PAGA Case Search website for overlapping cases involving the same employer and to provide notice of their proposed PAGA settlement to all such parties identified.
- Employer Verification: Settling employers will be required to verify that the list of overlapping actions is accurate and complete.
- Comment Period: Parties in overlapping cases and other persons entitled to notice will have 21 days from service of the notice to submit comments to the LWDA regarding the proposed settlement, including objections.
- No “After-the-Fact” Amendments: The regulations would prohibit employees from amending a PAGA notice to add violations not previously alleged once they have reached a proposed settlement in a pending civil action, reinforcing the principle that an employee must be properly “deputized” for specific violations before they can settle them.
4. Expanded LWDA Oversight and Timeline
The proposed rules significantly expand the LWDA’s “check and balance” role in PAGA matters.
- 45‑Day Review Period: The LWDA must be given at least 45 days to review any proposed PAGA settlement before a court hearing is scheduled, and parties may not set a hearing on a schedule that gives the Agency less than this review period.
- Pre‑Investigation Interviews: The Labor Commissioner’s Office would gain express authority to interview any employee who filed a notice upon reasonable request, and may request such interviews even before issuing a formal notice of investigation.
- Limits on Pre‑Lawsuit Settlements of PAGA Claims: The regulations would prohibit parties from using settlements reached after a PAGA notice is filed but before a lawsuit is filed in court to release PAGA claims (including the state’s claims and those of other aggrieved employees).
5. Small Employer Cure Process
The regulations also seek to formalize and further detail the “cure” process for small employers, providing granular instructions on how to utilize the specialized procedures designed to resolve certain violations without protracted litigation.
Employers with fewer than 100 employees during the one‑year period prior to the PAGA notice may submit a confidential cure proposal within 33 days of receipt of the notice, triggering a structured review, potential cure conference, and cure determination process administered by the Agency. The text also limits repeat use of the small‑employer cure mechanism for the same code provision within a 12‑month period, reinforcing that the process is intended to resolve technical or correctable issues rather than enable serial noncompliance.
Why This Matters
These regulations represent a shift from a “notice-and-sue” model to a more regulated administrative process. For defense counsel, these rules provide new tools to challenge generic, boilerplate notices and “reverse auction” settlements. For plaintiff’s counsel, the administrative burden of filing and the risk of “high-frequency” labeling will necessitate a more selective approach to case intake.
How to Weigh In
The LWDA is accepting written comments on these proposed regulations until March 23, 2026.
If you wish submit comments regarding how these changes will impact your practice or your clients, they should be directed to:
Danielle West, PAGA Rulemaking and Policy Analyst
California Labor and Workforce Development Agency
1416 Ninth Street (MIC-55)
Sacramento, CA 95814
Comments also may be submitted by email to [email protected].
