PAGA Claims Can Be Waived In Arbitration Pacts, Judge Says

Law360, New York (October 20, 2014, 5:00 PM EDT) -- A federal judge rejected the California Supreme Court's conclusion that workers' right to bring representative Private Attorneys General Act claims can't be waived through arbitration agreements, marking the latest federal ruling to eschew the state high court's June Iskanian decision.

U.S. District Judge Jesus Bernal on Friday granted 20/20 Communications Inc.'s motion to compel arbitration in a putative class action accusing the direct sales and marketing company of misclassifying sales representatives as independent contractors rather than employees.

The plaintiffs, who 20/20 said were bound by arbitration agreements requiring individual arbitration of employment claims, argued that workers could not waive their right...

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