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September 3

How Your Payroll Provider Can Help Prevent PAGA Claims in California

If you run a business with employees in California, you’ve probably heard of PAGA, the Private Attorneys General Act. It allows employees to file claims for labor code violations not just for themselves, but for all employees at your company. Because of this even small payroll and HR mistakes can quickly become costly, which is why prevention is so important.

The good news is that HCM providers like Premier can play a big role in keeping you protected. By using your platform and support team the right way, you can greatly reduce your risk and stay ahead of compliance issues. Here are some ways companies like us can help:

Accurate Payroll Processing

PAGA claims often start with wage and hour issues. Your payroll provider can help by doing things like making sure wage statements meet California’s strict requirements, keeping you up to date on minimum wage changes, and providing access to reports that you can use to catch mistakes prior to processing a payroll.

Time and Attendance Tracking

Meal and rest break violations are a frequent source of claims. With the right tools, you can require employees to clock in and out for breaks, track and pay overtime correctly, and even automate meal and rest break premiums.

HR Workflows and Documentation

Strong processes and documentation can be your best defense. HCM systems like Premier offers lets employers digitize onboarding, so items like wage notices and company policies are signed and stored. Good ones also allow you to centralize all of your employee HR data in one place, and the best ones will even send automated emails to remind you when something like harassment prevention training is due for members of your staff.

Compliance Updates

California labor laws change often. Your HCM provider should be updating your system regularly to make it easier for you to stay compliant. You should also have access to HR experts who can guide you through what those changes mean for your business and put them into place for you.

Data and Reporting

With powerful reporting, you can catch small issues before they grow. Audit reports highlight things like missing punches, unauthorized deductions, and unpaid overtime so you can correct them quickly. These reports can act like a safety net if you know what to look for.

All California employers should be making compliance a top priority due to the risk of a PAGA lawsuit. By leaning on Premier’s technology and expertise, you can put guardrails in place to prevent the errors that can lead to claims. It’s all about working smarter, getting organized, and making compliance part of your everyday process. Contact our team for more info if your payroll provider isn’t helping you or your clients with this.

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