If you’re a California employer, understanding how PAGA audits work could save you from costly lawsuits and penalties. The Private Attorneys General Act (PAGA) allows employees to sue on behalf of the state for labor violations. And if your company is caught unprepared, even small issues can quickly spiral into major legal headaches.

At Rupal Law, we help employers across California identify risk areas before a PAGA claim hits. We aim to keep you compliant, reduce liability, and protect your business. Call us at (951) 460-0830 for a confidential consultation.

What Is a PAGA Audit?

A PAGA audit is a proactive internal review of your wage and hour practices to uncover violations that could trigger a PAGA lawsuit. These audits typically focus on areas where employers are most vulnerable, such as:

• Meal and rest break compliance

• Off-the-clock work and unpaid wages

• Employee misclassification (especially independent contractors)

• Inaccurate wage statements

• Late final paychecks

• Reimbursement for business expenses

Unlike a government audit, a PAGA audit is done voluntarily by the employer, often with help from experienced employment law attorneys. Think of it as a check-up for your HR and payroll systems.

Why Are PAGA Audits So Important?

PAGA lawsuits are on the rise in California. They can be brought by just one employee but affect your entire workforce. And because PAGA allows employees to collect civil penalties on behalf of the state, even small infractions can lead to large claims.

Here’s the catch: PAGA claims don’t require the employee to prove actual harm. It’s enough to show that a technical violation happened—like forgetting to include total hours worked on a wage statement. That’s why smart employers don’t wait for a lawsuit to hit. They take a proactive approach with regular audits.

Top Mistakes That Trigger PAGA Claims

Even well-meaning businesses can fall into common traps. Here are a few mistakes we see often during PAGA audits for California employers:

1. Misclassified Workers
Many companies mistakenly classify employees as independent contractors or exempt from overtime. This often leads to wage violations and unpaid overtime.

2. Unpaid or Missed Meal and Rest Breaks
California law is strict about meal and rest breaks. If you’re not tracking these correctly or automatically deducting breaks without confirming they were taken, you’re opening yourself up to risk.

3. Sloppy Timekeeping Systems
Failing to accurately track hours worked, including prep time, travel between job sites, or off-the-clock tasks, can lead to unpaid wage claims.

4. Inaccurate Wage Statements
Missing information like the employer’s legal name, correct pay period dates, or total hours worked can lead to statutory penalties—even if the employee was paid correctly.

5. Final Pay Issues
Not paying all final wages on the employee’s last day (especially commissions, vacation time, or bonuses) is one of the most common triggers of PAGA claims.

What to Expect During a PAGA Audit

When you work with a law firm like Rupal Law, we guide you through a complete review of your employment practices. A thorough PAGA audit usually includes:

• Reviewing payroll records and wage statements

• Evaluating the classification of employees vs. contractors

• Spot-checking break records and schedules

• Verifying policies for time tracking, expense reimbursement, and final pay

• Making sure your handbook reflects current California labor laws

After the audit, we provide a written report with clear action steps. This may include policy updates, back pay recommendations, or training for supervisors.

Remember: catching an issue before an employee does is always cheaper than fighting a lawsuit.

Benefits of Doing a PAGA Audit Now

Still wondering if a PAGA audit is worth it? Here’s what you gain:

• Peace of mind: You’ll know where you stand with compliance

• Cost savings: Fixing issues now helps you avoid five- or six-figure penalties later

• Protection: You may be able to use audit findings to support a defense if you’re ever sued

• Stronger reputation: It shows your employees and partners you care about doing things the right way

At Rupal Law, we’ve helped countless businesses across California get ahead of legal problems with preventive audits. We make the process simple and practical—no confusing legal jargon or judgment, just solutions.

Call Rupal Law to Schedule a PAGA Compliance Audit

Don’t wait for a PAGA claim to cost your business thousands of dollars. A PAGA audit is one of the best investments you can make as a California employer. Proudly protecting California employers from Los Angeles County to Orange County, the Inland Empire and all of California.

📞 Call Rupal Law today at (951) 460-0830 to book a confidential review.
Let’s make sure your business is protected—before it’s too late.