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Sunday, May 17, 2026

Calif. employers perverting arbitration law, private AG plaintiffs tell SCOTUS - Reuters

A view of the U.S. Supreme Court at Capitol Hill in Washington, U.S., February 22, 2022. REUTERS/Tom Brenner

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(Reuters) - Employers are misusing the Federal Arbitration Act as a tool to eliminate representative actions to police California labor code violations, according to a brief filed on Wednesday at the U.S. Supreme Court in a case that will decide the future of California’s Private Attorney General Act – and could have unintended implications in litigation ranging from False Claims Act qui tam suits to shareholder derivative cases.

Lawyers for Angie Moriana, a onetime sales representative for Viking River Cruises Inc who sued the company in California state court for numerous alleged labor code violations, warned the U.S. justices that employers are not simply asking the court to allow them to force employees to arbitrate PAGA cases, in which a representative worker stands in the shoes of the state to assert claims for civil penalties for breaching labor regulations.

Instead, wrote Moriana counsel, Viking and its business-friendly amici are counting on the Supreme Court to permit them, in the name of the Federal Arbitration Act, to require employees to forfeit their entire right under California state...



Read Full Story: https://www.reuters.com/legal/government/calif-employers-perverting-arbitrati...