Labor/Employment
Jul. 18, 2023
Arbitration clauses don’t bar PAGA claims, justices rule
“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 wrote.
California workers whose claims for violating labor laws are referred to arbitration may still pursue claims in court on behalf of their colleagues under California’s 2004 private right of action law, the state Supreme Court ruled Monday.
The decision essentially overrules a U.S. Supreme Court ruling last year that would have required the dismissal of representative claims once an individual’s case is sent to arbitration.
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