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Litigation & Arbitration

Jul. 17, 2023

Worker arbitration clauses do not prohibit PAGA claims, state Supreme Court rules

"An order compelling arbitration of individual claims does not strip the plaintiff of standing to litigate non-individual claims in court," Justice Goodwin H. Liu wrote for the unanimous court.

The state Supreme Court ruled Monday that workers whose claims are referred to arbitration are not barred from bringing Private Attorneys General Act claims in court on behalf of others.

"In sum, where a plaintiff has filed a PAGA action comprised of individual and non-individual claims, an order compelling arbitration of individual claims does not strip the plaintiff of standing to litigate non-individual claims in court," Justice Goodwin H. Liu, an appointee of Gov. Jer...

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