What is PAGA and Why Should California Restaurants Care?
Running a restaurant in California involves following a long list of labor laws, one of the trickiest of which is the Private Attorneys General Act (PAGA). PAGA allows employees to sue on behalf of the state for labor code violations, which means small mistakes can quickly turn into major lawsuits.
This blog is the first in a three-part PAGA series focusing on the foundations of PAGA compliance: Training.
This blog is the second in a three-part PAGA series focusing on the foundations of PAGA compliance: Processes
Other blogs in this series can be found below:
To gain firsthand insight into the impact of training on PAGA compliance, Forte interviewed Jason Berkowitz, Founder and CEO of Arrow Up training, based in Los Angeles. Jason has seen how easily businesses can get tripped up by compliance mistakes and emphasizes the critical role training can play in protecting restaurants from lawsuits. Jason explains:
"Training isn't just about compliance, it’s about creating a workplace where employees feel informed and respected. When employees understand the rules, they’re more engaged and businesses are better protected."
One example he shared? A manager calling an employee after hours to complain about how they closed the restaurant. The manager thought they were protecting the business, but instead, they were creating legal liability and damaging workplace culture. Under California labor laws, any work-related communication after hours must be compensated. These small missteps add up, and before you know it, you're facing a costly lawsuit.
Why Training Is Essential for PAGA Compliance
Training isn’t just about keeping a rulebook on the shelf, it’s about ensuring every employee and manager understands what’s expected of them. From proper clock-in and clock-out procedures to legally required break times, your team needs to know the laws.
When employees aren’t trained properly, they can unintentionally break the law. For example, many restaurant workers think it’s fine to clock out and wait for their tips. It turns out that’s illegal in California. If the employee is required to wait on the premises, that time must be compensated. These are small mistakes that can easily be avoided with proper training.
Training Gaps That Lead to Legal Trouble for Restaurants
So where do restaurants typically go wrong? According to Jason, one of the most significant gaps is failing to provide training on how to communicate effectively, not just what the rules are. Restaurant managers often believe they’re doing the right thing by enforcing policies, but if they don’t know how to deliver that message, they could create a legal risk.
Another common issue? Jason explains,
"Too often, businesses do one-off training and think they're covered. But compliance is an ongoing effort. Laws change, and refresher training is critical to keep everyone on the same page."
The Best Formats for Compliance Training
Attention spans are short these days, especially in the fast-paced restaurant world. Training needs to be engaging, practical, and memorable. That is why Jason recommends a blended approach:
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Online courses for consistency and convenience. These are especially useful for new hires and employees who are getting ready for a promotion.
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In-person sessions will reinforce key points and make sure training sticks. This format is excellent for refresher related sessions.
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Micro-learning tools like memes and quick videos to remind employees of critical compliance rules.
Micro-messaging, such as sending GIFs or reminders through internal chat platforms, can help reinforce policies in an easy-to-digest way. Jason’s team has even created compliance memes to keep key labor laws in employees’ minds.
How to Document Training to Protect Your Business
If a claim arises, you must prove that your employees were trained. That means keeping clear records of training sessions, attendance, and signed acknowledgments. Digital records are ideal, if an employee ever claims they weren’t aware of a policy, you have documentation to back it up.
Here’s how to do it effectively:
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Use Digital Records Whenever Possible – If an employee claims they weren’t aware of a policy, digital documentation provides clear proof.
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Track Training During Onboarding – Have employees sign acknowledgment forms confirming they received and understood key policies (food safety, harassment prevention, workplace safety). Store these forms digitally.
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Use an LMS (Learning Management System) for Online Training – If you provide training online, an LMS automatically records completion dates, quiz results, and certificates.
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Log In-Person Training – For any live training sessions, keep a sign-in sheet with employee signatures and store scanned copies for easy access. Have the employee confirm participation in your LMS if you're using a training tool with that feature
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Stay Compliant with Required Refreshers – California requires specific training (like harassment prevention) to be completed regularly. Keep your records updated to avoid compliance issues.
By keeping clear, digital records of all employee training, you protect your restaurant from liability and ensure your team is properly informed.
Real-World Impact: How Training Prevents Lawsuits
A well-trained team is your best defense against legal trouble. Jason recalls,
"One restaurant group implemented a structured compliance training program, and when they faced an employee complaint, their documented training records saved them from a costly lawsuit."
How To Improve Your Training Program
If you’re looking for one simple step to boost your compliance, start with consistent, documented training. Whether you implement an online course, set up refresher training, or use micro-messaging to reinforce policies, making compliance education a priority will save you money in the long run.
At the end of the day, compliance isn’t just about avoiding lawsuits, it’s about creating a fair, well-run workplace where employees feel valued. Training is the foundation of that culture. If you invest in it, your business will be better protected, and your team will be stronger.
Want to Learn More?
Arrow Up is helping restaurant operators stay ahead of compliance challenges with streamlined training programs. If you’re ready to protect your business and empower your team, contact Jason Berkowitz to learn more about their approach to compliance training.
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