If you are a California employer, there is a major unresolved issue in PAGA litigation that could significantly impact your exposure—and your ability to enforce your arbitration agreements.
It is called a “headless” PAGA claim, and right now, California courts are split on whether these claims are even allowed.
The result: uncertainty, inconsistent outcomes, and a pending California Supreme Court decision that could reshape PAGA litigation as we know it.
Here are five things California employers need to know.
1. What Is a “Headless” PAGA Claim?
A traditional PAGA case has two components: an individual claim (violations the employee personally suffered) and a representative claim (brought on behalf of other aggrieved employees and the State of California). A “headless” PAGA claim removes the individual component entirely—leaving only the representative portion.
Why would a plaintiff do that? Strategy. If there is no individual claim, the plaintiff’s theory is that there is nothing left to send to arbitration—allowing the entire case to stay in court as a representative action, free from any arbitration agreement the employer has in place.
The practical effect is that plaintiffs may be using the pleadings themselves as a litigation tool to avoid arbitration altogether. Understanding what a headless claim is—and why plaintiffs pursue them—is the first step in developing a sound defense strategy.
2. The Courts Are Split—and the Split Is Real
California appellate courts have...
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