PAGA Lawsuits and Arbitration: California Supreme Court's Landmark Ruling

Labor and employment partner and practice group leader Cheryl Orr, partner Pascal Benyamini and associate Kristin Halsing coauthored an article for HR Legal & Compliance Excellence on how employers should take note of a California Supreme Court ruling that affirms Private Attorneys General Act (PAGA) plaintiffs' right to pursue collective claims in state court despite individual claims subjected to arbitration.

The authors explain that the California Supreme Court challenged the U.S. Supreme Court's 2022 decision, asserting that compelled arbitration did not negate standing for PAGA representative claims. They further note that the ruling emphasized an "aggrieved employee" maintains standing as long as a labor code violation occurs, even with individual arbitration.

The full article is available for HR.com subscribers.