WASHINGTON —
The Supreme Court on Wednesday weighed an employer’s challenge to a California labor law that authorizes private attorneys to sue on behalf of thousands of workers, even if those workers had agreed to arbitrate their claims individually.
The closely watched case is the latest and perhaps most important test of whether companies can shield themselves from costly employment lawsuits through arbitration clauses that forbid group or class claims.
The court’s conservative justices said little during Wednesday’s argument in Viking River Cruises vs. Moriana, while the three liberals spoke in defense of the California law.
“This is the state’s decision to enforce its own labor laws in a particular kind of way,” Justice Elena Kagan said.
She was referring to the Private Attorneys General Act of 2004, in which the Legislature authorized private attorneys to sue employers and collect penalties for violations of the labor code.
The state said it did not have enough staff to police industries where “labor law violations are the most rampant, including agriculture, garment, construction, car wash, and restaurants.”
The suits often cite complaints of wage theft or unpaid overtime work. Under the law, 75% of the penalties collected are to be returned to the state, while the remainder is divided among the employees and the attorneys.
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