California Employment Attorneys for Employers and Businesses

If you receive a PAGA notice, formally called a Labor and Workforce Development Agency (LWDA) notice, you should contact a California employment attorney right away. The timeline starts as soon as that notice is served.

Here is the situation in plain terms. PAGA, the Private Attorneys General Act, allows a current or former employee to bring a claim on behalf of the State of California for alleged Labor Code violations. Before filing a lawsuit, the employee must submit a notice to the LWDA. That notice triggers a 65-day window where the LWDA can decide whether to investigate. In most cases, the LWDA does not step in, which means the employee’s attorney can move forward in court once that window closes.

Under the 2024 PAGA reforms, employers now have an opportunity to take early corrective action. If you can show that you took all reasonable steps to fix any issues, it can significantly reduce your potential penalties. That opportunity is short and very strategic. What you do in the first few weeks can shape the entire outcome.

Do not ignore the notice. Do not discipline or retaliate against the employee who filed it. And do not assume the claims are minor. PAGA penalties are calculated per employee, per pay period, and can add up quickly even for technical violations.

McLellan Law Group, LLP represents California employers in PAGA defense throughout Silicon Valley, the Bay Area, and across California. Contact us for a free consultation as soon as you receive a notice.

Yes, and this is one of the biggest misconceptions California employers have.

California is an at-will state, which means you can generally terminate an employee at any time, for any reason, or for no reason. But there are important exceptions, and most wrongful termination claims come from those exceptions.

Even with at-will employment, you cannot terminate someone if the decision:

• Violates public policy, such as firing someone for filing a workers’ compensation claim, reporting a safety issue, or taking protected leave
• Is based on a protected characteristic under FEHA, including race, gender, age, disability, religion, sexual orientation, or national origin
• Is retaliation for protected activity, like reporting harassment, filing a wage complaint, or participating in an investigation
• Breaches an implied contract created by your own handbook, offer letter, or statements made during hiring

Implied contract claims are especially risky. Language like “permanent employment,” “job security,” or “we only terminate for cause” can undermine your at-will policy, even if that was not your intent.

The key takeaway is this. At-will employment is a starting point, not a shield. Every termination should be documented, reviewed for risk, and handled consistently with your policies.

If you are considering terminating an employee and have any concerns, contact McLellan Law Group, LLP before taking action. A short consultation on the front end is far less costly than defending a lawsuit later.

This distinction matters more than most employers realize, and it can directly impact your defense strategy.

A class action is brought by one or more plaintiffs on behalf of a group of similarly situated individuals. To move forward, the plaintiffs must obtain class certification from the court. That is a significant hurdle. If certification is denied, the case typically cannot proceed on a class-wide basis.

A PAGA claim works very differently. Under PAGA, an employee acts on behalf of the State of California, not a group of individuals. There is no class certification requirement. That means no certification hearing and no opportunity to defeat the case by challenging the class structure.

Here are the differences that tend to matter most:

• PAGA penalties are statutory and can grow quickly. They are calculated per employee, per pay period, which can lead to significant exposure even for technical violations
• PAGA claims cannot be fully eliminated through arbitration agreements in the same way individual claims can. While the law in this area has evolved after Viking River Cruises v. Moriana, PAGA exposure still remains for most employers
• Seventy-five percent of PAGA penalties go to the State, and twenty-five percent go to the employees. The individual recovery may be small, but the overall liability can be substantial
• The 2024 reforms introduced new opportunities for employers to cure issues and potentially limit penalties, which makes early legal strategy especially important

If you are facing a PAGA claim or a class action, McLellan Law Group, LLP can help you evaluate your exposure and plan your next steps. Contact us for a free consultation.

You are not legally required to use an attorney, but the risk of getting it wrong is usually far more expensive than doing it correctly from the start.

A severance agreement is a binding contract. When it is properly drafted, it allows you to resolve a separation cleanly and limit future claims. If it is done incorrectly, it may not be enforceable at all, which means you paid severance without getting the protection you expected.

There are several legal layers involved.

For employees who are 40 or older, the Older Workers Benefit Protection Act requires very specific language and timing. The employee must be given at least 21 days to consider the agreement, or 45 days in a group layoff, along with a 7-day revocation period after signing. If these rules are not followed, the release of age claims is not valid.

California law also requires a proper waiver under Civil Code section 1542 to release unknown claims. Without it, an employee could later bring claims they did not know about at the time of signing.

Non-disparagement and confidentiality provisions are another area to watch closely. California law has changed in recent years, and clauses that used to be standard may now be restricted or create risk.

There are also provisions you simply cannot include, such as language that prevents employees from discussing unlawful workplace conduct in certain situations.

Beyond compliance, a strong severance agreement is also a strategic document. It should be tailored to the situation, anticipate potential claims, and clearly define the scope of the release.

McLellan Law Group, LLP drafts and reviews severance agreements for California employers throughout Silicon Valley, the Bay Area, and across California. We also advise employees and executives before they sign. Contact us for a free consultation.

If your employer paid you late, document the late payment dates and any communications regarding the delay. Under California labor laws, employers are required to pay wages promptly, and late payments can entitle you to penalties. File a complaint with the California Labor Commissioner or seek legal advice to understand your rights and potential remedies. Employers may face fines and be required to pay additional compensation for late wages. Ensuring timely wage payments is essential for protecting your financial stability and legal rights.

In employment law, waiting time penalties refer to the compensation owed to an employee when an employer willfully fails to pay final wages on time. Under California law, these penalties accrue daily at the employee’s regular rate of pay, up to a maximum of 30 days. Waiting time penalties are intended to encourage prompt payment of wages upon termination or resignation. If you experience delayed final wages, you may be entitled to these penalties. Understanding your rights under California labor laws can help ensure timely wage payments.

After being fired, collect any documentation related to your employment. Review your final paycheck to ensure all owed wages and unused vacation are included, as required by California labor laws. Apply for unemployment benefits through the California Employment Development Department (EDD) and update your resume to start your job search. If you believe your termination was unlawful, consult with an employment attorney to explore potential legal actions. Understanding your rights can help you navigate this challenging time effectively.

If you’re laid off, review your final paycheck to ensure you receive all entitled wages, including any accrued vacation, as required by California labor laws. Next, consider consulting with an employment attorney to review any severance agreement and understand your rights. Apply for unemployment benefits through the California Employment Development Department (EDD) to support your income during the transition. Update your resume and start searching for new job opportunities immediately.

Before signing a severance agreement from your former employer, carefully review the terms and conditions, as it may waive certain legal rights. It’s advisable to consult with an employment attorney to understand the implications and ensure the agreement is fair and compliant with California labor laws. The agreement might include clauses on confidentiality and the release of claims that can significantly impact your future. An attorney can explain these clauses to you, and they could also help negotiate for higher severance pay and better terms. Protecting your rights and interests is crucial before making a decision.

If you're demoted at work, document the reasons provided for the demotion and any relevant communications. Review your employment contract and company policies to understand your rights and whether the demotion complies with California labor laws. Discuss the demotion with your employer to seek clarification and explore possible resolutions. If you believe the demotion was unjust or discriminatory, consult with an employment attorney to evaluate your legal options.

If you're discriminated against at work, document the incidents with detailed notes on what happened, including dates, times, and witnesses. Report the discrimination to your HR department or supervisor following your company's procedures. Under California employment laws, you have the right to a workplace free from discrimination based on race, gender, age, disability, and other protected characteristics. File a complaint with the California Civil Rights Department (CA CRD) if the issue is not resolved internally. Consulting with an employment attorney can help you understand your rights and pursue any necessary legal action.