SHRM26 Debrief · Legal & Compliant HR · #1396
California HR Minefields: What’s New, What’s Next, What’s Costly
with Joe Beachboard
& Jennifer Shaw
& Jennifer Shaw"The average PAGA settlement? 900,000 to $1.1 million. The average jury verdict over a million dollars."
What it was about
California employment law keeps expanding in scope and penalty severity, but employers can protect themselves through disciplined documentation, careful vendor selection, and proactive audits rather than by managing from fear.
By the numbers
$120 million (reduced to $20 million)
Jury award in a single-plaintiff age discrimination case against Liberty Mutual (December, later reduced)
$900,000 to $1.1 million
Average PAGA settlement amount
$575,000
Average cost to defend an employment case in California
Key notes
- Notify all employees of their rights under the Know Your Rights Act (SB 294) by February 1 each year and during onboarding. Separately, ask every employee to designate an emergency/detention contact rather than reusing an existing emergency contact on file.
- Put any stay-or-pay/tuition reimbursement agreement in writing and structure repayment on a pro rata basis (e.g., 4/12 owed if an employee leaves after 4 months of a 12-month agreement) to comply with AB 692.
- Review job postings so salary ranges are a good-faith estimate within 10% of the mean pay for the role, per SB 642, instead of using artificially wide ranges.
The contrarian takeDocumenting an employee's performance problems more thoroughly right after they engage in protected activity (a complaint, workers' comp claim, etc.) can actually help prove a retaliation claim against the employer rather than protect it. The conventional HR instinct to 'build the file' at that moment can backfire.
Take this back Monday
Do this for your team
Redesign your training sign-in sheets so each employee individually logs trainer, date, duration, subject, and competencies covered.
Say this in your next leadership meeting
PAGA settlements average $900K-$1.1M, so we're running a wage-and-hour self-audit now, before a claim, not after.
Watch out for
- Treating wage-and-hour compliance as a paperwork problem instead of an operational one. Relying on vendors (payroll, LOA, timekeeping platforms) who claim they can't support California-specific requirements.
- Discarding or ignoring the LWDA notice letter that initiates a PAGA claim because it doesn't look like a formal lawsuit.
- Documenting performance issues only after an employee engages in protected activity (complaint, workers' comp claim), which can be used as evidence of retaliation.
Fun fact · Joe Beachboard
As an employment lawyer, he calls his most interesting project representing the cast and crew of The Office, from the pilot through its final season.
If this landed, see these
↳ Go deeperCalifornia Earthquakes: What You Need To Know for 2027Same California minefield, twelve months later, once this year's fixes are already in place.⇄ The counterpointCulture Redefined: Architecting a Skills-Driven, Continuous Feedback CultureDocumentation wins lawsuits here, but this session argues paperwork culture is what kills honest feedback.✦ The unexpected oneAre You Okay? Fight Burnout Using PlayBoth warn against managing from fear, just applied to burnout instead of PAGA exposure.