Buckingham Property Management’s $600,000 Settlement Rejected

Buckingham Property Management’s proposal to pay up to $600,000 to resolve class claims over allegedly unpaid wages was rejected by a federal court in California, after deciding that the agreement’s reversionary clause was incompatible with the state’s Private Attorneys General Act.

“Reversion of any portion of a PAGA civil penalty is impermissible,” Judge Dale A. Drozd said, rejecting the magistrate judge’s report and recommendation to approve the settlement.

PAGA rights can’t be waived and employers can’t contract around liability for willful or negligent violations of the law, according to the Thursday decision.

Under PAGA, 75% of associated civil penalties must ...