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SCOTUS Denies Hearing to Resolve Split Regarding Whether an Employee Must Arbitrate PAGA Claims

Published by on February 18, 2015

The U.S. Supreme Court recently declined to review the California Supreme Court’s decision in Iskanian v. CLS Transportation Los Angeles, which held that arbitration provisions requiring employees to arbitrate representative actions pursuant to California’s Private Attorneys General Act of 2004 (“PAGA”) are unenforceable under state law. While the California Supreme Court in Iskanian held that employees cannot […]

The U.S. Supreme Court recently declined to review the California Supreme Court’s decision in Iskanian v. CLS Transportation Los Angeles, which held that arbitration provisions requiring employees to arbitrate representative actions pursuant to California’s Private Attorneys General Act of 2004 (“PAGA”) are unenforceable under state law.

While the California Supreme Court in Iskanian held that employees cannot waive their right to bring PAGA claims, a number of federal trial courts in California have disagreed and ruled that PAGA waivers are enforceable, citing the U.S. Supreme Court’s decision in AT&T Mobility v. Concepcion. The U.S. Supreme Court has decided that they will not resolve this split between state and federal courts applying Iskanian.

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