9th Circ. Finds PAGA Labor Claims Shouldn't Be Aggregated

Law360, Los Angeles (August 13, 2013, 4:57 PM EDT) -- A divided Ninth Circuit remanded a wage-and-hour suit against a pest control company to state court Tuesday, saying civil penalties recoverable by aggrieved employees under California's Private Attorney General Act cannot be aggregated to meet the $75,000 threshold for federal jurisdiction.

In a case of first impression, a 2-1 majority of the three-judge appellate panel said the representative PAGA action against Orkin Services of California Inc. did not come under an exception to the “anti-aggregation” rule, which was crafted by the U.S. Supreme Court and applies...
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