Burden / PAGA Exposure Calculator
This calculator helps estimate how much money a company might have to pay if it didn’t give employees their required meal or rest breaks, which can lead to legal issues (like PAGA lawsuits in California).
Understand the Legal Landscape Before It Costs You
When it comes to employment law and labor compliance, even small oversights can lead to massive financial exposure. Below are a few critical areas to consider if your business is facing legal scrutiny or planning a preventive audit.
PAGA Claims – The Silent Threat
- The Private Attorneys General Act (PAGA) allows employees to file lawsuits on behalf of the state for labor code violations.
- These claims often look back up to one year, but if converted into a class-action lawsuit, the potential exposure could increase fourfold.
- Early legal advice and internal audits are key to limiting this risk.
Meal & Rest Break Violations – A Common Entry Point
Failure to properly provide or document meal and rest breaks opens the door to broader lawsuits. Once a case is filed, the opposing legal counsel may try to add other violations, such as:
Overtime pay disputes
Off-the-clock work
Unreimbursed business expenses
These additional claims can significantly raise settlement amounts or judgments.
How it works — Step by Step:
A. Number of Employees
Enter the total number of employees in your organization.
B. Payroll Periods Per Year
Specify how many payroll cycles you run annually (e.g., 12 for monthly, 26 for bi-weekly).
C. Average Burdened Wage
Provide the average hourly wage per employee, including taxes, benefits, and other associated costs (known as the “burdened wage”).
D. Employees With Potential Violations
Estimate how many employees may incur at least one break violation per payroll period.
E. Total Violations Per Payroll Cycle
Estimate the total number of violations that might occur during a single payroll cycle.
Example: If one employee misses one meal break and two rest breaks in a shift, that counts as three violations
Potential Rest and Meal Break PAGA Exposure
Penalties (X): $0
Reimbursement to Employees (Y): $0
Estimated Legal and Professional Fees (Z):
$0
?
Legal and professional fee calculations are just best guess estimates. Some items to be aware of:
1. Just an initial review of the case could cost 10,000 from your attorney
2. Timekeeping system audits can run up to 5000
3. Depositions can run 10,000 each
4. Mediation range between 5,000 to 10,000
Total Potential Liability Estimate: $0
?
Some BIG things to consider:
- PAGA is a class-action going back 1 year. If this were a regular class-action the exposure could be 4× this much.
- Meal and rest break violations are a gateway to these lawsuits. Opposing council will undoubtably try to add other infractions such as overtime, working off the clock, expense reimbursement, etc. This scenario does not account for any of those variables.
- Many of these case can drag on for 36–48 months.
