Seyfarth Synopsis: The Fifth District Court of Appeal reaffirmed its earlier holding in CRST Expedited, Inc. v. Superior Court that plaintiffs can bring “headless” PAGA actions—claims seeking civil penalties solely for Labor Code violations suffered by other employees.
In Galarsa v. Dolgen California, LLC, the Fifth District revisited the permissive language in the pre-reform version of PAGA. Specifically, the Court examined the phrase “on behalf of himself or herself and other current or former employees” and found it ambiguous when paired with the permissive verb “may.” This ambiguity, the Court explained, justified applying the “exceptional rule of construction,” interpreting “and” to mean “and/or.” As a result, the Court concluded that pre-reform PAGA allows plaintiffs to pursue (1) claims for violations they personally suffered, (2) claims for violations suffered only by others, or (3) both. This interpretation, the Court reasoned, best promotes PAGA’s purpose of maximizing Labor Code enforcement.
The Fifth District’s reaffirmation of headless PAGA actions applies only to claims brought under the version of PAGA in effect prior to the July 1, 2024 reforms. With a split in appellate authority still unresolved, trial courts retain discretion to adopt the statutory interpretation they believe best reflects legislative intent. The California Supreme Court will weigh in when it decides Leeper v. Shipt, Inc., which could settle the debate over whether headless PAGA actions remain viable under pre-reform law.