There is a new, but not entirely unexpected, front in the continuing war over California Labor Code Private Attorneys General Act (PAGA) claims. On July 20, 2022, the California Supreme Court granted review in Adolph v. Uber Technologies, Inc., opening the door for a ruling that potentially may complicate the relief provided to employers by the recent decision from the Supreme Court of the United States in Viking River Cruises, Inc. v. Moriana.
As PAGA cases continue to take their toll on employers, many believed that the Supreme Court’s decision in Viking River Cruises would provide much-needed relief for employers. That’s because the Court in that case both enforced the parties’ arbitration agreement and, critically, ordered dismissal of the plaintiff’s nonindividual PAGA action, holding that statutory principles of standing precluded the employee from bringing claims on behalf of others in court while the employee was resolving an individual PAGA claim in arbitration. Viking River Cruises provided employers with an opportunity to minimize PAGA risk by implementing properly designed arbitration agreements. With the California Supreme Court accepting review in Adolph, the relief provided by Viking River Cruises may be in doubt.
In Viking River Cruises, the Supreme Court of the United States held that employees who had signed arbitration agreements could be required to arbitrate their individual PAGA claims. As a result, the Court concluded they were barred from...
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