In a significant development for California employers, the Court of Appeal in Williams v. Alacrity Solutions Group, LLC recently affirmed the dismissal of a Private Attorneys General Act (“PAGA”) claim brought solely on behalf of other employees, holding that a PAGA plaintiff must assert a timely individual claim to maintain standing.

The plaintiff, a former insurance adjuster, alleged various Labor Code violations during his employment, including unpaid overtime and inaccurate wage statements. However, he waited more than a year after his employment ended to file the required notice with the Labor & Workforce Development Agency—placing his individual claims outside the one-year statute of limitations applicable to PAGA actions.

Williams attempted to sidestep this defect by pursuing penalties exclusively on behalf of other current and former employees, arguing that his lack of a personal claim was irrelevant. The court disagreed. Citing the plain language of the statute and a string of appellate decisions, the court held even under the pre-June 2024 version of PAGA, a representative action must include a timely individual claim by the named plaintiff.

The Williams Court rejected arguments based on Kim v. Reins International California, Inc. and Adolph v. Uber Technologies, Inc., distinguishing them as post-filing standing cases that did not eliminate the statute of limitations requirement for the plaintiff’s own claim. The court also declined to allow the plaintiff to amend, finding no reasonable possibility of curing the time-barred defect.

Key Takeaway for Employers:

This decision solidifies employers’ defenses against the trend of “headless” PAGA lawsuits—claims brought by individuals with no personal claims or timely violations. Employers facing stale claims from former employees should assess whether the plaintiff’s own claims fall within the statute of limitations, as this may provide a basis for dismissal. It also further reinforces the importance of compelling the individual portion of a plaintiff’s PAGA claim to arbitration so they must prove that they personally suffered a Labor Code violation during the statute of limitations before the representative component can be litigated. With the addition of the June 2024, PAGA amendments further emphasizing the need for the individual to have a claim to establish standing to bring a PAGA claim for others, courts appear increasingly unwilling to permit end-runs around the statutory prerequisites for bring a PAGA claim.

This publication is published by the law firm of Ervin Cohen & Jessup LLP. The publication is intended to present an overview of current legal trends; no article should be construed as representing advice on specific, individual legal matters. Articles may be reprinted with permission and acknowledgment. ECJ is a registered service mark of Ervin Cohen & Jessup LLP. All rights reserved.