California Appellate Court says plaintiffs can enforce paid sick leave through PAGA

At a glance

• A California appellate court recently held that a plaintiff could pursue an action under the California Private Attorneys General Act (PAGA) against her former employer for alleged violations of California’s Healthy Workplaces, Healthy Families Act of 2014 (the Act) (Labour Code § 245 et seq.), which requires employers to provide eligible employees with at least three paid sick days per year.

At issue was the meaning of Labour Code Section 248.5(e), which provides that the Labour Commissioner or the Attorney General may bring a civil action to enforce the law and, upon prevailing, be entitled to collect legal or equitable relief on behalf of the aggrieved employees, but that “any person or entity enforcing this article on behalf of the public as provided for under applicable state law shall, upon prevailing, be entitled only to equitable, injunctive, or restitutionary relief.”

The California Court of Appeal, Fourth Appellate District concluded that the statute’s text and history provided compelling evidence that the phrase “on behalf of the public as provided under applicable state law” in section 248.5(e) was intended to refer to actions prosecuted under the Unfair Competition Law, not PAGA. According to the Court of Appeal, “given the perceived necessity for mandating minimum paid sick leave, coupled with its documented understanding that traditional government institutions would be unable to adequately assure compliance, it seems inconceivable that the Legislature intended to prohibit PAGA actions to enforce the Act.”

Employers are encouraged to take steps to ensure compliance with sick leave laws, which could be yet another source of PAGA risk for California employers.