New PAGA rule will cost employers more time and money, California lawyer says
Recent changes to the way Private Attorneys General Act (PAGA) claims are compelled to arbitration will likely result in more money and time spent for employers, a California Chamber of Commerce (CalChamber) lawyer said.
PAGA was created in 2004 to allow “an aggrieved employee” to bring civil action against an employer they allege is violating the California Labor Code. They may act on their own individual behalf, or on behalf of other employees in a representative claim, as proxy representatives of the state Labor and Workforce Development Agency.
On July 17, 2023, in a ruling on Adolph v. Uber Technologies, Inc., the California Supreme Court decided that individuals who have their PAGA claims compelled to arbitration may still file another representative PAGA claim in civil court.
Previous to this decision, individuals who had their complaints compelled to arbitration would not have been able to also pursue a representative PAGA action in civil court. That is no longer the case.
Bianca N. Saad, Vice President of Labor and Employment at CalChamber, said this is going to make an already expensive process worse for employers.
“It really is just adding to the time and the expense of defending claims,” Saad told HRD. “I think one takeaway is really to do what you can to stay out of these lawsuits to begin with, like focusing on complying with...
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