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Law Practice,
Labor/Employment,
Appellate Practice

Aug. 15, 2022

Firm wants to upend formula for splitting PAGA settlements

The current status quo for PAGA settlements follows other settlements, where attorney fees and costs are taken "off the top" from the initial total fund. Then, workers get 25% of what is remaining and the rest goes to the state.

A Los Angeles firm is seeking to fundamentally change how Private Attorneys General Act settlements are split among employees, the state Labor & Workforce Development Agency, attorney fees and costs.

The current status quo for PAGA settlements follows other settlements, where attorney’ fees and costs are taken “off the top” from the initial total fund. Then, workers get 25% of what is remaining and the rest goes to the state.

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