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Ninth Circuit Restricts Scope of PAGA Claims in Federal Court and Clarifies California Wage Statement Requirements | Payne & Fears


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On May 28, 2021, the Ninth Circuit Court of Appeals handed Walmart a groundbreaking win in a wage-and-hour class and California Labor Code Private Attorneys General Act (“PAGA ) action.  Reversing a nearly $102 million verdict against Walmart, the Ninth Circuit held in
Magadia v. Wal-Mart Associates, Inc., No. 19-16184, (1) that an employee does not have standing to bring a PAGA claim in federal court for a Labor Code violation that he or she did not suffer personally, and (2) that employers may true up overtime rates later affected by bonus or incentive payments by making lump sum payments on wage statements without specifying a corresponding hourly rate. ....

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