Waiving PAGA Action In Employment Arbitration Agreement
August 1, 2011, 1:43 PM EDT
Law360, New York (August 1, 2011, 1:43 PM EDT) -- Can California employers secure enforceable arbitration agreements from their employees that waive the right to pursue representative actions under the Labor Code Private Attorneys General Act ("PAGA") in court? On July 12, 2011, the California Court of Appeal held in Brown v. Ralphs Grocery Co. that these waivers are not enforceable under California law.
Focusing on what it believed to be the fundamental differences between class actions and PAGA representative actions, the court held California prohibits waivers of PAGA actions in a way that does not...