Yesterday, December 15, 2021, the U.S. Supreme Court agreed to review a challenge to California’s Private Attorneys General Act (PAGA). PAGA is a California law that authorizes “aggrieved” employees to file lawsuits against an employer on behalf of themselves and other employees and to collect civil penalties on behalf of the Labor Commissioner for an employer’s Labor Code violations.
Under current law, PAGA claims may not be compelled to arbitration, even if both the employer and employee agree. The U.S. Supreme Court will now weigh in on whether PAGA claims can be compelled to arbitration.
In the meantime, employers should review their arbitration agreements with their employment counsel, and continue to follow the current laws related to PAGA claims.
We will continue to monitor this matter and, as additional updates are issued, we will keep you informed.