The PAGA Payment Clause Samples
The PAGA Payment clause defines the obligations and procedures for payments related to claims under California’s Private Attorneys General Act (PAGA). Typically, this clause outlines how any settlement or judgment amounts designated as PAGA penalties are to be calculated, allocated between the state and affected employees, and distributed according to statutory requirements. Its core function is to ensure compliance with PAGA’s unique payment structure, thereby clarifying financial responsibilities and reducing the risk of disputes over how such payments are handled.
The PAGA Payment. The Parties will seek approval from the Court for the PAGA Payment of $50,000, which shall be allocated 75% ($37,500) to the LWDA (the “LWDA Payment”) as the LWDA’s share of the settlement of civil penalties paid under this Agreement pursuant to the PAGA, and taken out of the Gross Settlement Amount, and 25% ($12,500) will remain in the Net Settlement Amount for distribution to the Aggrieved Employees based upon their respective workweeks worked during the PAGA Period (“PAGA Shares”). The portion of the PAGA Payment distributed to Aggrieved Employees shall not be subject to wage withholdings and shall be reported on IRS Form 1099. Each Aggrieved Employee will be bound by the PAGA portion of the release contemplated in this agreement and will receive their respective PAGA Share regardless of whether they exclude themselves from the class action settlement. If the Court approves a PAGA Payment of less than $50,000, the remainder will be retained in the Net Settlement Amount for distribution to Participating Class Members. Class Counsel shall notify the Labor and Workforce Development Agency of this Settlement as required by statute.
The PAGA Payment. The Parties will seek approval from the Court for the PAGA Payment of $50,000 out of the Gross Settlement Amount, which shall be allocated 75% ($37,500) to the LWDA as the LWDA’s share of the settlement of civil penalties paid under this Agreement pursuant to the PAGA and 25% ($12,500) will be distributed to the Aggrieved Employees based on their respective pay periods by dividing the 25% of the PAGA Payment by the number of pay periods for all Aggrieved Employees worked during the PAGA Period to determine a dollar amount per pay period (“PAGA Rate”) and multiplying the pay periods for each individual Aggrieved Employee by the PAGA Rate to calculate their share of the PAGA Payment. If the Court approves a PAGA Payment of less than $50,000, the remainder will be retained in the Net Settlement Amount for distribution to Participating Class Members. All Aggrieved Employees will be sent their share of the PAGA Payment and will be subject to the release of the Released PAGA Claims as set forth below, whether or not they opt out of the Settlement. One hundred percent (100%) of the PAGA Payment is in settlement of claims for penalties and not be subject to wage withholdings, and shall be reported on IRS Form 1099.
The PAGA Payment. The Parties will seek approval from the Court for the PAGA Payment of $25,000 out of the Gross Settlement Amount, which shall be allocated 75% ($18,750) to the California Labor and Workforce Development Agency (“LWDA”) as the LWDA’s share of the settlement of civil penalties paid under this Agreement pursuant to the PAGA and 25% ($6,250) will be distributed to the Aggrieved Employees based on their respective pay periods worked during the PAGA Period. If the Court approves a PAGA Payment of less than $25,000, the remainder will be retained in the Net Settlement Amount for distribution to Participating Settlement Class Members. All Aggrieved Employees will be sent their share of the PAGA Payment and will be subject to the release of the Released PAGA Claims as set forth below, whether or not they opt out of the Settlement. One hundred percent (100%) of the PAGA Payment is in settlement of claims for penalties and not be subject to wage withholdings, and shall be reported on IRS Form 1099.
The PAGA Payment. The Parties will seek approval from the Court for the PAGA Payment of $60,000.00 out of the Gross Settlement Amount, which shall be allocated 75% ($45,000.00) under this Agreement pursuant to the PAGA and 25% ($15,000.00) to be retained in the Net Settlement Amount for distribution to the PAGA Group. If the Court approves a PAGA Payment of less than $60,000.00, the remainder will be retained in the Net Settlement Amount for distribution to Participating Class Members.
The PAGA Payment. The Parties will seek approval from the Court for the PAGA Payment of $100,000, seventy-five percent (75%) of which ($75,000) shall be paid to the LWDA as the LWDA’s share of the settlement of civil penalties paid under this Agreement pursuant to the PAGA, and taken out of the Gross Settlement Amount, and twenty-five percent (25%) of which ($25,000) will remain in the Net Settlement Amount for distribution solely to the Aggrieved Employees as their PAGA Shares based upon their respective workweeks worked during the PAGA Period. The portion of the PAGA Payment distributed to Aggrieved Employees shall not be subject to wage withholdings and shall be reported on IRS Form 1099. Each Aggrieved Employee will be bound by the PAGA portion of the release contemplated in this agreement and will receive their respective PAGA Share regardless of whether they exclude themselves from the class action settlement. If the Court approves a PAGA Payment of less than $100,000, the remainder will be retained in the Net Settlement Amount for distribution to Participating Class Members. Class Counsel shall notify the LWDA of this Settlement as required by statute. / / /
The PAGA Payment. The Parties will seek approval from the Court for the PAGA Payment of $50,000 out of the Gross Settlement Amount, which shall be allocated 75% ($37,500) to the LWDA as the LWDA’s share of the settlement of civil penalties paid under this Agreement pursuant to the PAGA and 25% ($12,500) will be distributed to the Aggrieved Employees based on their respective pay periods worked during the PAGA Period. If the Court approves a PAGA Payment of less than $50,000, the remainder will be retained in the Net Settlement Amount for distribution to Participating Class Members. All Aggrieved Employees will be sent their share of the PAGA Payment and will be subject to the release of the Released PAGA Claims as set forth below, whether or not they opt out of the Settlement. One hundred percent (100%) of the PAGA Payment is in settlement of claims for penalties and not be subject to wage withholdings, and shall be reported on IRS Form 1099.
The PAGA Payment. The Parties will seek approval from the Court for the PAGA Payment of $20,000 out of the Gross Settlement Amount, of which 75% ($15,000) shall be allocated to the LWDA as the LWDA’s share of the settlement of civil penalties paid under this Agreement pursuant to PAGA and 25% ($5,000) will be distributed to the Aggrieved Employees based on their respective pay periods worked during the PAGA Period. If the Court approves a PAGA Payment of less than $20,000, it shall not the terminate this Agreement, otherwise affect the Court’s ruling on the Motion for Final Approval, or extend the deadline for any appeal with respect to any order on the Motion for Final Approval and the remainder will be retained in the Net Settlement Amount for distribution to Participating Class Members. If the Court approves a PAGA Payment of more than $20,000, it shall not the terminate this Agreement, otherwise affect the Court’s ruling on the Motion for Final Approval, or extend the deadline for any appeal with respect to any order on the Motion for Final Approval, and the excess amount will be taken from the Net Settlement Amount for distribution of Participating Class Members. All Aggrieved Employees will be sent their share of the PAGA Payment and will be subject to the release of their Released PAGA Claims as set forth below, whether or not they opt out of the Settlement. One hundred percent (100%) of the PAGA Payment is in settlement of claims for penalties and shall not be subject to wage withholdings, and shall be reported on IRS Form 1099. This payment shall constitute full satisfaction of the obligation, if any, to pay civil penalties to the LWDA pursuant to California Labor Code Section 2699(i) as to the Released PAGA Claims.