AB 1506 provides employers with a protection from lawsuits involving minor technical violations on wage statements, which have no injury to employees, during the 33-day right-to-cure period. This cure window is limited to alleged violations of California Labor Code 226 (a) (6) and (8) – the provisions requiring that wage statements (pay stubs) include the inclusive dates of the pay period and the employer’s full name and address.
In order to invoke the right to cure, the employer has 33 days from the postmark date of the notice of alleged violation to issue compliant wage statements to all aggrieved employees for each pay period for the three-year period preceding the postmark date of the notice. The employer then must provide written notice, through certified mail, to the complaining employee (or designated representative) and the California Labor and Workforce Development Agency that the violations have been cured. If cured, the employee cannot file a lawsuit for penalties against the employer. The employer is only allowed to avail itself of this right-to-cure once within any 12-month period for the same violation(s) alleged in the notice.
This a small fix to the overarching issue of some plaintiff attorneys abusing the PAGA statute by preying upon employers, especially small businesses, for minor technical violations which result in no injury to employees, but puts a significant financial burden. Additional reforms are still necessary involving PAGA in order to tamper down the litigious environment in California that presents a major ongoing concern for businesses.