On June 15, 2022, the Supreme Court of the United States issued its highly anticipated decision in Viking River Cruises, Inc. v. Moriana, 596 U.S. ___, 142 S.Ct. 1906 (2022), pertaining to the arbitrability of representative actions under California's Private Attorneys General Act ("PAGA") [Cal. Lab. Code, §§ 2698, et seq.]. Unfortunately, the Supreme Court injected a greater degree of uncertainty to the claims than previously existed, even though the decision offered a modicum of relief to employers who have been overwhelmed by the expense of defending and settling these actions. As discussed below, the California Supreme has now decided to add its voice to the matter.
Viking River Cruises
The facts of Viking River Cruises, Inc. v. Moriana are straightforward. The employer prepared an arbitration agreement for its California employees whereby the employees waived their right to bring or participate in a representative action under PAGA. Moriana, a Viking employee who signed such an agreement, tried to sue Viking under PAGA. Viking sought to dismiss the PAGA action on grounds that Moriana had contractually waived her right to bring or participate in the PAGA action. Viking lost at every stage of the action, including in its attempt to obtain review at the California Supreme Court. Viking then sought review with the United States Supreme Court and was granted certiorari.
How does PAGA work?
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