LWDA’s First PAGA Regulations Proposal: The March 2026 Analysis

The Development

On February 6, 2026, the California Labor and Workforce Development Agency published a Notice of Proposed Rulemaking to adopt 33 new sections to Title 8 of the California Code of Regulations implementing the 2024 PAGA reforms. Since PAGA's enactment in 2004 — and through the AB 2288 / SB 92 reform package — no formal regulations have governed the statute's administrative procedures. The proposed rules change that.

The written comment period closes March 23, 2026. The LWDA has not scheduled a public hearing but will hold one if it receives a written request at least 15 days before the comment deadline. Comments may be submitted to Danielle West, PAGA Rulemaking and Policy Analyst, at Danielle.West@labor.ca.gov.

What the Proposed Regulations Do

Standardize PAGA notice content. The regulations require PAGA notices to use an LWDA form and provide "short and plain" factual statements and theories for each alleged violation. Bare legal conclusions and boilerplate allegations — the filing pattern that has driven the volume of frivolous PAGA claims — are explicitly identified as insufficient. Critically, the proposed rules limit subsequent litigation and settlements to the Labor Code violations and theories of liability included in the PAGA notice. Violations not adequately alleged in the notice cannot be litigated or settled later.

Structure the small employer cure process. The regulations provide the procedural framework for § 2699.3(c)(2) cure proposals, including what the employer's cure proposal must contain, how LWDA conferences are scheduled and conducted, timelines for cure completion, and procedures for disputing and appealing cure determinations. The regulations confirm that cure-related communications are protected under Evidence Code § 1152.

Clarify the 100-employee threshold. The proposed rules specify that the small employer designation includes all employees — exempt and nonexempt, permanent and temporary — at any location within the preceding year. Employers near the threshold should assess their headcount under this standard.

Create a vexatious filer designation. The LWDA proposes a process for designating high-frequency and vexatious PAGA filers, with prefiling screening orders and a public list maintained on the LWDA portal. This directly targets the mass-filing practice that has driven PAGA claim volumes despite the 2024 reforms.

Expand settlement oversight. Proposed rules require more robust settlement submission packages, give the LWDA at least 45 days to review proposed settlements, and require notice to other employees who have pending PAGA claims against the same employer. The last point could complicate the current practice of resolving overlapping and competing PAGA claims through a single settling plaintiff.

Specify the employer response process. The proposed rules give procedural detail to the existing statutory ability to respond to a PAGA notice, including the filing channel and supporting content. They do not create that statutory response right for the first time.

The March 2026 Practice Implications

Submit comments by March 23. The cure sufficiency standard, the scope of the employer response mechanism, and the vexatious filer criteria are all areas where defense-side input can shape the final regulations. Employers with experience receiving boilerplate PAGA notices should consider providing concrete examples of the filing practices the LWDA is targeting.

Audit cure readiness. The proposed regulations operationalize the cure process with specific submission requirements and timelines. Employers with fewer than 100 employees should pre-draft cure proposal templates that satisfy the proposed content requirements. For a small-employer cure proposal, the 33-day clock runs from receipt of the PAGA notice; the separate wage-statement cure deadline runs from the notice’s postmark — preparation before a notice arrives is the only way to meet the deadline without compromising cure quality.

Re-evaluate the 100-employee headcount. The inclusion of all employee types — exempt, nonexempt, permanent, temporary — in the count may push employers above the threshold who assumed otherwise. Employers near the line should calculate their headcount under the proposed standard and determine whether they fall within the small employer cure track or must pursue the Early Evaluation Conference under § 2699.3(f).

Prepare for longer settlement timelines. The proposed 45-day LWDA review period for settlements, combined with the notice requirement to other pending PAGA claimants, will extend the time from settlement agreement to court approval. Defense counsel negotiating PAGA settlements should build this lead time into the resolution timeline.

Sources

Labor Code § 2699 · Labor Code § 2699.3 · AB 2288, chaptered bill · SB 92, chaptered bill.

LWDA PAGA FAQs · Official rulemaking record · February proposed text.