Summary
The California Supreme Court held in Adolph v. Uber Technologies, Inc. that a plaintiff compelled to arbitrate an individual California Labor Code Private Attorneys General Act (PAGA) claim still maintains standing to litigate a “representative” PAGA claim in court.
The Upshot
The United States Supreme Court previously held in Viking River Cruises, Inc. v. Moriana that if an employee is compelled to arbitrate an individual PAGA claim in California, the employee loses standing to maintain a representative PAGA claim on behalf of other non-exempt employees. However, the California Supreme Court rejected this interpretation of California law in Adolph, and concluded that an order compelling arbitration of an individual PAGA claim does not strip the plaintiff of standing to litigate the representative PAGA claim in court.
- Employees who have entered enforceable arbitration agreements with their employers can now rely on Adolph in taking the position that they have standing to maintain their representative PAGA claim in court even if they are compelled to arbitrate their individual PAGA claim.
- The California Supreme Court left open the possibility of an employer seeking a stay of the representative PAGA claim pending the outcome of the individual PAGA claim in arbitration, and the trial court then dismissing the representative claim for a lack of standing if the arbitrator determines the employee is not a proper “aggrieved employee” under PAGA.
The Bottom Line
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