As we begin March, there are many developments for California employers on the legal front. Here are five issues that should catch employer’s attention this week (and will likely have impacts on California employers for the rest of the year):

1. Does California’s Private Attorneys General Act (PAGA) Survive 2022?

PAGA was designed by the California Legislature offer financial incentives to private individuals to enforce state labor laws by recovering certain civil penalties. Aggrieved employees can seek recovery of civil penalties for Labor Code violations they suffered, in addition to penalties for all Labor Code violations by the employer in a representative action, as long as the employee suffered by at least one violation. 75% of the collected penalties must be distributed to the Labor and Workforce Development Agency, and the remaining 25% is to be distributed among the employees affected by the violations, and a prevailing plaintiff is entitled to their fees and costs. PAGA claims are representative actions, which are distinct from class actions.

On one front, PAGA is being challenged in the courts. On December 15, 2021, the U.S. Supreme Court granted certiorari in Viking River Cruises, Inc. v. Moriana. At issue in this case is whether a California employer may enter into an arbitration agreement with an employee whereby the employee agrees to only bring his or her individual claims in an arbitration proceeding and not bring any class or representative claim under...

Read Full Story: https://www.californiaemploymentlawreport.com/2022/03/five-employment-law-dev...