California Employees Are Suing More Than Ever — Here’s What the Data Means for Your Business

If you run a business in Los Angeles and feel like employment litigation risk has increased dramatically in recent years, you’re not imagining it. California consistently ranks as one of the most litigious states in the country for employment claims, and the trend lines are moving in the wrong direction for employers. Understanding what’s driving this increase — and what businesses in Beverly Hills, Santa Monica, Downtown LA, and across Los Angeles County can do about it — is essential for any company that employs people in California.
Several legal developments have fueled the surge. The Private Attorneys General Act (PAGA), which allows individual employees to bring representative actions on behalf of all aggrieved employees for Labor Code violations, has become the preferred vehicle for employment class action litigation in California. PAGA claims carry significant financial exposure and are notoriously difficult to dismiss early. Every business in Los Angeles with employees should be aware of their PAGA exposure.
Remote work has also expanded employment litigation geography in unexpected ways. Companies that previously operated only in one location now have employees scattered across California, triggering wage and hour obligations in multiple local jurisdictions and creating compliance challenges that didn’t exist a few years ago. Los Angeles businesses that expanded their remote workforce during and after the pandemic often created unintentional compliance gaps.
The expansion of California’s anti-discrimination protections under FEHA — including protections for a broad range of characteristics — has also increased the number of potential discrimination and harassment claims that employers face. Training compliance and documentation practices have never been more important.
For Los Angeles employers, the response to this environment is not panic — it’s preparation. Proactive legal audits, robust employment policies, and a relationship with an experienced civil defense attorney who can respond quickly when claims arise are the foundations of effective risk management.
Best Civil Attorneys defends employers in employment civil litigation throughout Los Angeles County. Contact us today to protect your business.