The purpose of arbitration, according to the California Arbitration Act and the Federal Arbitration Act, is to encourage parties seeking to avoid delays associated with civil actions to resolve their differences via a tribunal of their own choice.
In Leshane v. Tracy VW, Inc., the plaintiffs brought a complaint against their former employers, Tracy VW, Inc. and RJ Gill Ventures, Inc. They claimed several Labor Code violations on their own behalf as ex-employees, on behalf of others similarly situated, and on behalf of the state under the Private Attorneys General Act of 2004 (PAGA).
The former employers brought a petition to compel arbitration. The plaintiffs amended their complaint to allege Labor Code violations solely as the state’s representatives under the PAGA. The employers continued to seek arbitration of the plaintiffs’ individual claims and asked for the court to dismiss the plaintiffs’ class claims in line with arbitration agreements that the plaintiffs signed.
Read more: Court refuses to enforce arbitration agreement against employee who can’t read English
The trial court denied the petition to compel arbitration. It found that plaintiffs’ claim under PAGA was not subject to arbitration, based on the decision in Iskanian v. CLS Transportation Los Angeles, LLC (2014).
The employers appealed. They acknowledged that the PAGA claim could not be compelled to arbitration and that the plaintiffs were not actively pursuing relief based on any arbitrable legal or...
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