In Viking River Cruises, Inc. v. Moriana, plaintiff worked for Viking as a sales representative in Los Angeles. Plaintiff sued Viking alleging various Labor Code violations and sought to recover PAGA penalties on a representative basis. However, when she started working for Viking, she agreed to resolve all employment issues with Viking in arbitration, and the parties would use individual procedures rather than class or representative action procedures such as PAGA. Viking sought to compel Moriana’s individual claims to arbitration, but the trial court and the California Court of Appeal denied Viking’s request, citing the California Supreme Court’s holding in Iskanian v. CLS Transportation Los Angeles, LLC. The California Court of Appeal noted that it “must follow the California Supreme Court, unless the United States Supreme Court has decided the same question differently.” Therefore, Viking petitioned the United States Supreme Court to review the case, arguing that Iskanian is preempted by federal law under the Federal Arbitration Act (FAA) and the U.S. Supreme Court holdings in AT&T Mobility v. Concepcion and Epic Systems Corp. v. Lewis. As we reported earlier, the U.S. Supreme Court issued its decision on June 15, 2022, finding that the FAA preempts California’s prohibition on the employer’s ability to implement arbitration agreements with PAGA waivers. Here are five issues California employers need to know about the Viking decision:
1. Arbitration agreements...
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