In California, employment data is more than just a compliance checkbox, it’s the foundation of protecting your business from or during wage and hour litigation. Most employers dutifully collect mountains of information: hours worked, pay rates, overtime, meal breaks, break attestations, and more. But collecting data without reviewing and analyzing could be like having a smoke detector and never putting in the batteries. The information is there, but it’s not protecting you and could cause problems down the line.
Data without analysis is a missed opportunity.
Employment claims, particularly under the Private Attorneys General Act (PAGA), hinge on patterns in the data. A robust time and pay system run by well-known and respected vendors might seem fine at a glance, but only analysis will reveal issues such as missed breaks that aren’t compensated, uncompensated recorded time, or regular rate miscalculations. These are the kinds of problems that can escalate into expensive claims if they go unnoticed.
Break attestations matter.
Many employers in California have implemented meal and rest break attestation processes and they can provide a wealth of information, including evidence of non-compliance. If employees frequently note that they weren’t able to take a timely or uninterrupted break and were not compensated with a premium, that’s not just a scheduling hiccup, it’s a legal liability. Regularly reviewing these attestations and following up on what they show allows employers to address problems early.
The new PAGA cure period changes the game.
Under the June 2024 reforms to PAGA, employers now have a limited “cure period” to fix certain issues before litigation proceeds. This can be a lifeline but only if you’re ready to act fast. The cure period is short, and you’ll need to quickly identify and address potential violations. If you have to start from scratch, digging up old records, piecing together payroll data, or trying to interpret timekeeping entries, you’ll burn through that window before you even begin to fix the problem.
Being “cure-ready” means having your data not just stored, but organized, cleaned, and routinely analyzed so you can immediately monitor your wage and hour compliance and address what needs attention. The employers who can hit the ground running during or even before the cure period are the ones most likely to minimize exposure and avoid costly settlements.
Proactive review protects your business and your people.
Of course, analyzing employment data isn’t just about avoiding lawsuits, it’s also about creating a fair and compliant workplace. Employees who see that their hours, breaks, and pay are tracked accurately and corrected promptly tend to have higher trust in their employer. This can improve morale, reduce turnover, and limit grievances before they become formal claims.
Recommended action plan for Audit/Cure:
- Regular Audits – Schedule regular reviews of pay, time, and break attestation data with your legal counsel.
- Trend Analysis – Look for recurring issues, not just one-off errors.
- Documentation – Keep clear records of what you reviewed, what you found, and how you fixed it.
- Rapid Response Protocols – Have a clear process for addressing any issues so you’re ready to take advantage of the PAGA cure period.
In California’s current legal climate, data is your early warning system. But it only works if you use it. Don’t just collect information: analyze it, act on it, and be ready to defend your practices. Your future self (and your legal budget) will thank you.
Written by:
Partner
312.626.2749
arose@resecon.com