Two Key California Employment Law Cases: Clarifying PAGA Claims and COVID-19 Emergency Rule 9

The month of August 2023 has seen some significant developments in California employment law. Notably, two important cases have emerged that could have wide-reaching implications.

Firstly, we turn our attention towards the interpretation of Emergency Rule 9, which was enacted in response to the COVID-19 pandemic. The statute postponed the deadlines for asserting legal claims for six months. An affirmation has been provided on its validity with respect to the Private Attorneys General Act (PAGA) claims, in particular, the notice letter to the California Labor & Workforce Development Agency (JD Supra).

This instruction carries significant implications for the civil suit time frames for PAGA claims, plus the period in which to serve the notice letter to the Labor & Workforce Development Agency. This development affords employees significantly more time to initiate their civil suits under the ceremony of PAGA claims.

Secondly, a judicially approved settlement of PAGA claims has been determined to be restricted exclusively to the allegations or theories that were indeed presented in the notice to the Labor & Workforce Development Agency (JD Supra).

This interpretation implies that, for successful settlements, the claims would need to be comprehensively outlined in the advisory notice to Labor & Workforce Development Agency. Any theory or claim not included in the notice could potentially be dismissed, as it is not covered by the settlement. This will likely increase the precision required in drafting such notices.

In conclusion, these concurrent cases have added considerable clarity to the particulars of PAGA claim procedures and the COVID-19 tolling rule. Employment law professionals, particularly those in corporate law settings, should be aware of these changes when preparing their PAGA claim processes and drafting the necessary documents, in order to ensure full compliance and protection for their clients and organizations.