How Does a Class Action Lawsuit Work in California?

Direct answer: A class action lets one or more people sue on behalf of a larger group that was harmed in the same way. In California, a judge must certify the class under Code of Civil Procedure § 382 before the case proceeds as a group. Class members pay nothing upfront, receive notice, and share in any recovery unless they opt out.

Key facts

How Do You Start a Class Action Lawsuit?

You start a class action by bringing your own claim to a class action attorney. You do not need to organize a group, find other plaintiffs, or know how many people were affected. Most employment class actions begin with a single employee.

The attorney’s first job is to figure out whether your problem is individual or systemic. A missed paycheck may be a one-time error. A timekeeping system that rounds every employee’s hours down, or a policy that keeps every cashier on the clock through lunch, affects everyone the same way, and that shared harm is what makes a class action possible.

If the claim fits, the attorney files a complaint in your name and on behalf of everyone in the same situation. You become the class representative, sometimes called the named plaintiff. The role carries real responsibility: you owe a duty to the class to act in its interest, you help the attorneys gather documents, and you may be asked to sit for a deposition. In return, courts often approve a service award for the representative’s time and risk, paid from the settlement or judgment.

What Does a Judge Require to Certify a Class in California?

A judge certifies a class only when the group is clearly defined and its members share common legal and factual questions that can be decided together. Under Code of Civil Procedure § 382, the plaintiff must show an ascertainable class and a well-defined community of interest among its members.

A community of interest has three parts: common questions of law or fact that predominate over individual ones, a class representative whose claims are typical of the group, and a representative and attorneys who can adequately protect the class. The court must also find that a class action is superior to hundreds or thousands of separate lawsuits.

In Brinker Restaurant Corp. v. Superior Court (2012), the California Supreme Court explained that the key question is whether the plaintiff’s theory of recovery can be proven with common evidence. A uniform written policy that violates the law is well suited to class treatment. A claim that depends entirely on what each supervisor told each employee usually is not.

What Happens After a Class Is Certified?

After certification, class members receive notice of the lawsuit and a chance to opt out, and the case moves toward trial or settlement. Most class actions resolve through settlement, but every class settlement in California must be approved by the court.

Under California Rules of Court, rule 3.769, the approval process has four steps. The court first reviews the settlement and grants preliminary approval if it appears fair. Class members then receive notice explaining the settlement, how much they can expect, and how to object or opt out. The court holds a final fairness hearing, where class members may appear and object. If the court grants final approval, a settlement administrator sends payments.

Payments are usually calculated by formula, such as the number of weeks each employee worked during the class period. Attorney’s fees are paid from the recovery, often as a percentage of the total fund, and the court must approve them. Under California law, uncashed checks and other unclaimed funds do not revert to the defendant. They go to nonprofit organizations and programs designated by statute or the court.

Can an Arbitration Agreement Stop a Class Action?

It can stop a class action, but it cannot stop a representative claim under California’s Private Attorneys General Act (PAGA). Many employers now require employees to sign arbitration agreements that waive the right to join a class action, and in Epic Systems Corp. v. Lewis (2018), the U.S. Supreme Court held that those waivers are generally enforceable.

PAGA works differently. It allows an employee to sue on behalf of the State of California to collect civil penalties for Labor Code violations affecting coworkers. In Viking River Cruises v. Moriana (2022), the U.S. Supreme Court held that an employee’s individual PAGA claim can be sent to arbitration. The California Supreme Court then held in Adolph v. Uber Technologies (2023) that the employee still has standing to pursue the representative claims for other employees in court.

For employees, this means an arbitration agreement is not the end of the conversation. Many wage-and-hour cases that would once have been filed as class actions now proceed as PAGA actions, or as a combination of both.

What We See in Practice

Our firm was among the first in California to bring wage-and-hour claims as class actions, and in the decades since, we have learned that the best cases rarely arrive labeled as class actions. An employee calls about being transferred to a new location or about a single late paycheck. When we look at their pay records, we find a rounding policy, missed meal periods, or wage statement errors that affect every employee at the company. That is how a single phone call becomes a case for thousands of people.

We also turn down most of the cases we evaluate. A class action takes years and requires evidence that holds up for the entire group, so we look for policies and practices that can be proven with common evidence, and we are prepared to take them to trial. We recently tried a representative case against Trader Joe’s to verdict over the company’s failure to provide seating to cashiers, a claim that applied to employees across its California stores.

Frequently Asked Questions

How many people are needed for a class action lawsuit?

There is no fixed minimum. California courts ask whether the group is large enough that bringing everyone into one lawsuit individually would be impractical. Federal courts generally treat 40 or more members as sufficient. Many employment class actions involve hundreds or thousands of current and former employees of the same company.

How long does a class action lawsuit take?

Most class actions take two to four years from filing to payment, and cases that go to trial or appeal can take longer. The timeline includes investigation, the certification motion, discovery, settlement negotiations, and the court approval process, which alone often takes six months or more after a settlement is reached.

Do I have to pay to be part of a class action?

No. Class members do not pay anything upfront or out of pocket. Class action attorneys typically work on a contingency basis, and their fees are paid from the settlement or judgment only after the court reviews and approves them. If the case does not succeed, class members owe nothing.

Are class action settlements taxable?

Often, at least in part. In employment cases, the portion of a settlement that replaces unpaid wages is generally taxed as wages and reported on a W-2, while amounts for penalties and interest are usually reported on a Form 1099. The settlement notice typically explains how payments will be reported. A tax professional can advise on your situation.

Should I opt out of a class action?

Most class members should stay in, because opting out means pursuing your claim on your own. Opting out can make sense when your individual damages are much larger than the typical class member’s, or when you have separate claims, such as discrimination or retaliation, that the class settlement would release. An attorney can help you compare.

Talk to a Class Action Attorney About Your Workplace

If you believe a pay practice or workplace policy is affecting you and your coworkers the same way, you do not need to gather a group before calling. Righetti Law Firm offers free consultations to California employees and has handled complex class actions for decades. Call 415-983-0900 to talk with our team.

Matthew Righetti, J.D.

Founder, Righetti Law Firm, P.C.

Matthew Righetti has represented California employees in wage and hour litigation for 40 years, including class actions against major employers over unpaid wages and Labor Code violations. Read more about Matthew Righetti

Published: October 15, 2026  |  Last updated: October 15, 2026

This article is for general informational purposes only and does not constitute legal advice. Reading this article does not create an attorney-client relationship with Righetti Law Firm, P.C. Every situation is different. Contact our office for advice about your specific circumstances.