Arbitrator should decide scope of claims subject to arbitration, says California Court of Appeal
Courts should hold employees to their choice of forum for the resolution of their disputes in a situation where the employees agreed to arbitrate future disputes then later brought a claim under the California Private Attorneys General Act (PAGA), the California Court of Appeal recently said.
Simplified Labor Staffing Solutions, Inc. – the defendant in the case of Lewis v. Simplified Labor Staffing Solutions, Inc. – was a multi-state temporary staffing services company. In 2019, the defendant hired the plaintiff as a materials handler.
The plaintiff signed an arbitration agreement and class action waiver. The agreement required arbitration of all claims arising from the employment relationship.
In 2020, the plaintiff filed a complaint against the defendant and against its affiliate and its clients with whom she was staffed. She brought PAGA claims and alleged numerous violations of California’s Labor Code, including failures to pay wages, to provide meal and rest periods, to maintain accurate payroll records, and to reimburse business expenses.
The defendant filed a motion to compel arbitration. It referred to the plaintiff’s predispute agreement to arbitrate all claims arising from the employment relationship.
The trial court denied the defendant’s motion. It made these findings:
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