U.S. Supreme Court Ruling Allows Arbitration of Individual PAGA Claims

June 23, 2022 | From HRCalifornia Extra

James W. Ward, Employment Law Subject Matter Expert/Legal Writer and Editor

In a win for California employers, the U.S. Supreme Court has ruled that individual claims under the Private Attorneys General Act (PAGA) can be compelled to arbitration if the employee signed a valid arbitration agreement to that effect (Viking River Cruises v. Moriana, 596 U.S. __ (June 15, 2022)).

Specifically, the Supreme Court ruled that the Federal Arbitration Act (FAA) preempts California Supreme Court case law that precluded division of PAGA actions into individual and non-individual claims through an arbitration agreement.

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