The PAGA Review
← Provisions
AB 2288§ 2699(e)–(j), (o)

Penalty Reduction

The reform combines specified reduced penalties, 15% and 30% reasonable-steps limits, cure consequences, limits on derivative penalties, and a weekly-pay adjustment, subject to statutory exceptions and judicial discretion.

Selected statutory text and related analysis. References checked against the published Labor Code on October 18, 2026.

Statutory Text

§ 2699(e)–(j), (o)
In any action by an aggrieved employee seeking recovery of a civil penalty available under subdivision (a) or (f), a court may award a lesser amount than the maximum civil penalty amount specified by this part, including the penalty amounts in subdivisions (g) and (h), or may, notwithstanding the limitations set forth in subdivisions (g) and (h) exceed the limitations set forth in those subdivisions, if, based on the facts and circumstances of the particular case, to do otherwise would result in an award that is unjust, arbitrary and oppressive, or confiscatory.

Lab. Code, § 2699(e)(2) — full official text

Analyses

Statutory Deep Dive
The Penalty Architecture: A Defense Map to the Reformed § 2699

AB 2288 replaced PAGA's binary penalty structure with a graduated framework of six tiers — from zero (full cure) to $200 (malicious conduct) — calibrated to employer behavior. This analysis maps each tier, the 'all reasonable steps' standard that controls the 15% and 30% caps, and the judicial override discretion that makes every penalty determination negotiable.

February 28, 2026

Strategic Landscape

With 1 analysis published on this provision, the interpretive landscape is beginning to take shape. Check individual analyses above for detailed strategic implications.