Daily Journal: Arbitration Clauses Don’t Bar PAGA Claims, Justices Rule

The California Supreme Court unanimously ruled that state workers who bring labor law claims that are referred to arbitration can still file claims on behalf of colleagues under California’s 2004 private right of action law. “It will almost certainly lead to further abuse of PAGA by some plaintiffs and their attorneys,” said Adam Karr, a partner at O’Melveny & Myers LLP. “Employers will be faced with high stakes individual arbitrations – if the employer prevails, the case should be dismissed, but if the employer does not, the case can proceed in court as a representative action.” 

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