In this guide8 sections
As of October 2026, whether you can drop your individual PAGA claim and sue only on behalf of coworkers and the state, a so-called “headless” PAGA case, is an open question in California. Appellate courts have disagreed, and the California Supreme Court agreed in April 2025 to decide it; argument was scheduled for November 2026. Until the court rules, dropping your individual claim to avoid arbitration is risky, and the safer course for most workers is to plead both parts of the claim and plan for arbitration of the individual piece.
Key takeaways
- A PAGA case has two parts: your “individual” claim for violations you suffered, and “non-individual” claims for violations against other employees.
- An arbitration agreement can send your individual PAGA claim to arbitration, but you generally keep standing to pursue the non-individual claims in court.
- Courts of appeal have split on whether you can leave out the individual claim entirely; the California Supreme Court is deciding the issue.
- For PAGA cases brought on or after June 19, 2024, you must have personally suffered each violation you allege (Labor Code §2699(c)).
- Get advice before you draft your PAGA notice, because what you allege there shapes what you can pursue later.
What PAGA is and why arbitration matters
The Private Attorneys General Act (Labor Code §2698 and following) lets an “aggrieved employee” sue an employer for civil penalties for Labor Code violations on behalf of the state and other current or former employees. The default penalty in many cases is $100 per aggrieved employee per pay period, and 65% of penalties go to the Labor and Workforce Development Agency (LWDA) and 35% to the aggrieved employees (Labor Code §2699(f), (m)). Before filing, you must send written notice of the violations to the LWDA and your employer. Our Labor Code §2699 guide covers the penalty rules in detail.
Many California employers require workers to sign arbitration agreements with class and representative action waivers. That is where the “headless” question comes from.
How the law got here
| Year | Development | What it means for workers |
|---|---|---|
| 2022 | The U.S. Supreme Court held that an arbitration agreement covered by the Federal Arbitration Act can require the worker’s individual PAGA claim to be arbitrated. | Your own PAGA claim may be sent to arbitration. |
| 2023 | The California Supreme Court held that a worker whose individual claim is sent to arbitration does not lose standing to pursue non-individual claims in court. | The coworker claims can stay in court, though the court may pause them while the arbitration runs. |
| 2024 | A Second District decision held that every PAGA action necessarily includes an individual claim, whether or not the complaint pleads one. | Leaving out the individual claim did not avoid arbitration of it. |
| June 19, 2024 | PAGA reform took effect for new cases. | You must have personally suffered each violation you allege. |
| 2025 | Decisions from the Fifth and Fourth Districts allowed workers to proceed on the complaint as written, without reading in an individual claim. | A split in the courts of appeal. |
| April 2025 | The California Supreme Court granted review of the 2024 Second District case. | A statewide answer is coming. |
The question the California Supreme Court will answer
The court limited review to two questions: whether every PAGA action necessarily includes both individual and non-individual claims, regardless of how the complaint is written, and whether a plaintiff can choose to bring only a non-individual PAGA action. Its answer will apply statewide and will end the current situation in which the result can depend on which appellate district your case is in.
Some commentary has said the 2024 amendments made headless cases invalid statewide. That overstates things. The amendments apply to civil actions brought on or after June 19, 2024 (Labor Code §2699(v)), and they changed who qualifies as an aggrieved employee. How they interact with headless cases is part of what the courts are still working out.
The 2024 standing rule
Under the amended statute, an “aggrieved employee” is someone who was employed by the alleged violator and personally suffered each of the violations alleged during the limitations period. In practice, that means:
- You can only bring PAGA claims for the kinds of violations that happened to you.
- If you never missed a meal break, for example, you generally cannot pursue meal break penalties for others, even if coworkers did.
- Your PAGA notice to the LWDA should describe violations you personally experienced.
Example (hypothetical): Jorge worked at a distribution center that required off-the-clock security screenings and shorted meal breaks. He signed an arbitration agreement at hire. If he files a PAGA case that includes his own claims for both violations, his individual claim may go to arbitration while the coworker claims wait in court. If he leaves his individual claim out, the result currently depends on the court and on how the Supreme Court rules.
What this means if you are thinking about a PAGA claim
- Don’t drop your individual claim on your own. Under the current split, it may not avoid arbitration and could create a standing problem.
- Find your arbitration agreement. Check onboarding documents and handbooks, and ask for copies of anything you signed. See how to request your personnel file.
- Check whether the agreement is enforceable. Agreements can be challenged as unconscionable. Our mediation and arbitration page explains the basics.
- Act within the deadline. PAGA penalties are tied to violations within the one-year limitations period, so delay can shrink or end your claim.
- Consider other claims. Unpaid wages, overtime and break premiums can also be pursued through a Labor Commissioner wage claim or a lawsuit, and those claims have their own, often longer, deadlines. Estimate them with our wage and hour calculator.
Frequently asked questions
What is a headless PAGA claim?
It is a PAGA case that seeks penalties only for violations against other employees, leaving out the plaintiff’s own individual claim, usually to keep the whole case out of arbitration.
If my individual PAGA claim goes to arbitration, do I lose the rest of the case?
Generally no. Under the California Supreme Court’s 2023 decision, you keep standing to pursue the non-individual claims in court, although the court may pause them until the arbitration ends.
Can I bring PAGA claims for violations that didn’t happen to me?
For cases brought on or after June 19, 2024, generally no. You must have personally suffered each violation you allege.
When will the California Supreme Court decide?
Oral argument was scheduled for November 3, 2026, and a written decision will follow. Until then, the rule depends on where your case is filed and how it is pleaded.
Is a PAGA case the same as a class action?
No. A class action recovers damages for a group of workers; PAGA recovers civil penalties, most of which go to the state. Learn more on our PAGA and class actions page.
Talk to a California employment lawyer
Employees First Labor Law represents workers exclusively in wage and hour, PAGA and class cases. We offer free virtual consultations to review your arbitration agreement and your options. Contact us or call (310) 853-3461.
This article is general information about California law as of 2026, not legal advice for your situation. Reading it does not create an attorney-client relationship.
