The parameters at a glance
Every knob in the analysis, its default, and where its rules live. Run inputs are fixed when an analysis runs; display levers adjust while reading, without re-running anything.
| Parameter | Default | Kind |
|---|---|---|
| Average hourly rate | Required — no default, no fallback | Run input |
| Rest-break estimation mode | Match meal, per employee | Run input |
| Split-shift threshold | 4 hours | Run input |
| Separation inactivity threshold (§ 203) | 28 days | Run input |
| Waiver treatment | Off — waivers assumed not to exist | Case setting |
| Filing date (statute windows) | Case setting — drives every window | Display lever |
| Assumed-paid share (§ 226) | 0% — assume no premiums paid | Display lever |
| Premium buffer | 0 — no offset | Display lever |
| PAGA base civil penalty | $100 per deficient pay period | Display lever |
Potential exposure formula
Potential premium exposure is the number of premium workdays multiplied by one hour of pay at the case’s average hourly rate. The meal side counts measured workdays — each workday with at least one potential meal violation. The rest side is estimated — a meal-derived rate applied to rest-qualifying shifts:
meal exposure = workdays with ≥ 1 potential meal violation × 1 hour × average hourly rate
estimated rest exposure = estimated rest premium workdays × 1 hour × average hourly rate
Plugged in at the worked example’s $21.00 average hourly rate: 120 meal premium workdays is $2,520.00 of potential meal exposure; an estimated 80 rest premium workdays adds an estimated $1,680.00. Each side is capped at one premium per workday — the two caps are separate — and the rate is a required input with no fallback.
The exposure headline presents these premiums and the penalty estimates as two tracks rather than one fused number. Total potential exposure is the sum of both, shown above a “Damages & premiums” subtotal — the meal and rest amounts above, which are wages under Naranjo v. Spectrum Security (2022) — and a “Penalties” subtotal — the § 226, § 203, and PAGA estimates. The split is not cosmetic: the two tracks rest on different legal theories and carry different limitations windows, so each subtotal states its own basis — the premium track a 4-year lookback, § 226 and PAGA each 1 year, § 203 keyed to separation rather than a filing-date window. Where a window cannot be applied the subtotal says so rather than implying one, and where the windowed read is unavailable the penalties subtotal states that PAGA is not included.
Related: Meal premium — per-workday cap · Average hourly rate assumption · Rest break model — estimated, not measured · Premium buffer — a display-time sensitivity offset · Penalty estimates — assumption-based · Statute-of-limitations windows
Average hourly rate assumption
Every per-employee dollar figure — the meal and rest premium amounts and the § 203 daily rate — uses a single average hourly rate for the whole population, set before the analysis runs and fixed for that run. The rate is a required precondition: an analysis cannot run until it is set, and no minimum-wage or other fallback is ever substituted.
One rate across the population is a disclosed simplification of the current scope. A future employee-census upload will supply per-employee rates that refine these figures; the Ferra “regular rate of compensation” adjustment — which can exceed the base hourly rate where nondiscretionary pay exists — is not computed, so figures use the entered rate as-is.
Related: Potential exposure formula · § 203 waiting-time penalty
Offsets — gross exposure to net
The Offsets page prices the rebuttal layer. It starts from gross computed exposure, applies three adjustments in a fixed order, and ends at the net figure the rest of the app reports. Each row states the amount its own step removes.
| Step | What it removes |
|---|---|
| Meal waivers | The waivable subset of meal premiums, when the case elects that waivers are in use. It removes nothing when the election is off. |
| Premium buffer | A share of premium workdays, at the buffer position the reader selects. The buffer scales the amounts the waiver step already reduced. It also removes any pay period whose premiums it absorbs entirely. That pay period then leaves the wage-statement count, and leaves the PAGA count with it. |
| Assumed paid share | The share of premiums the reader assumes the employer already paid. It applies last, after the per-employee § 226 cap runs. |
The order is the arithmetic order, not a presentation choice. The buffer scales amounts the waiver already reduced, and the assumed-paid share scales counts the buffer already narrowed. Pricing the steps in any other order would report a removal that no step performs.
The lines reconcile by construction. Each is the difference between two consecutive positions of the same computation, so the removals sum to gross minus net exactly. There is no residual row and no “other” row. An independent “what would this adjustment alone remove” breakdown would not sum to the total, because the three adjustments interact.
The § 203 waiting-time penalty is identical at every position. It counts in both gross and net, and appears in no removal line.
This page prices the PAGA civil penalty, inside the buffer step. The law charges it per deficient pay period. A pay period the buffer absorbs therefore stops carrying it. The waiver and the assumed paid share leave it alone. The first changes amounts rather than counts. The second scales the wage-statement figure off a different count. Gross and net on this page therefore match the exposure headline at those two lever positions.
Related: Potential exposure formula · Premium buffer — a display-time sensitivity offset · Waiver treatment
Which assumption moves the figure most
Exposure rests on assumptions a reader can dispute. This page ranks them by consequence. It sweeps one assumption across its plausible range. It holds every other assumption at the position the reader selected. It then measures how far the exposure figure travels. That distance is the assumption’s span.
| Assumption | Range swept |
|---|---|
| Assumed paid share | The share of premiums the reader credits the employer with having already paid, from 0 to 100 percent. |
| Premium buffer | The buffer position applied to premium workdays, across its full selectable range. Its span is the widest of the three on most cases, because it moves premiums, wage-statement penalties, and PAGA civil penalties at once. |
| Meal waivers | The binary election between waivers in use and waivers not in use. |
A longer span means the figure depends more on that assumption. It does not rank how likely a party is to contest that assumption. It also takes no view on which end of a range is correct. The page states the span and nothing else.
Every point on the chart is a statute-windowed figure. The same computation that produces the Exposure page reports each one, and there is no all-time path. The § 203 waiting-time penalty is not in these figures. It does not change with any of the three assumptions. It would therefore add the same amount at both ends of every span and leave the ranking exactly as it is.
These figures include the PAGA civil penalty, for the opposite reason. The buffer does change it. The law charges PAGA per deficient pay period, and a pay period whose premiums the buffer absorbs stops being deficient. Omitting PAGA would therefore have made the buffer look less consequential than it is. The other two assumptions leave PAGA alone, so their spans hold either way.
Related: Potential exposure formula · Offsets — gross exposure to net · Statute-of-limitations windows
Valuing a candidate settlement fund
The Valuation page prices a fund the reader proposes against the exposure the analysis computed. Every number on it is one of two things. It is a figure the analysis already computed and this page only divides. Or it is a percentage the reader typed. The page holds no default reduction, no suggested fund, and no recommended figure of any kind. A page opened with nothing entered asserts nothing.
| Figure | How it is derived |
|---|---|
| Amount per workweek | The candidate fund divided by the statute-windowed employee-workweek count. It reads as a dash, not zero, when either side is missing. |
| Per-employee allocation | Each employee’s share of the fund, pro rata by that employee’s share of windowed computed exposure. The page names that basis beside the figure. That basis excludes the PAGA civil penalty, which the law charges to the case rather than to an employee. |
| Reduction waterfall | The reader’s reduction percentages applied in the order entered, starting from computed exposure scoped to its statute windows. Each row names the amount its percentage multiplied. |
Computed exposure on this page matches the exposure headline for the case, PAGA civil penalties included. The per-employee allocation below it uses a narrower basis. The law charges PAGA per deficient pay period at the case level, so no employee carries a share of it. The page states the PAGA amount, so a reader can reconcile the two bases.
The allocation distribution reports percentiles by nearest rank. Every percentile shown is one real employee’s allocation, never a value interpolated between two of them. That keeps each figure reproducible by hand from the roster.
The arithmetic rounds no figure. Only the display rounds, so the chain from fund to share to allocation carries no accumulated error.
Related: Potential exposure formula · Offsets — gross exposure to net · Statute-of-limitations windows