Calif. Cos. Face More PAGA Suits As Iskanian Rule Stands

Law360, San Diego (June 1, 2015, 10:49 PM EDT) -- The U.S. Supreme Court’s refusal Monday to consider a case challenging Iskanian v. CLS Transportation’s prohibition on Private Attorneys General Act waivers in employment arbitration agreements opens the door for a wave of costly PAGA actions against California employers, lawyers say.

The high court rejected Bridgestone Retail Operations LLC’s January bid for a writ of certiorari claiming the state high court’s refusal to apply the Federal Arbitration Act to enforce its employment arbitration agreement with a waiver of representative claims conflicts with the Supreme Court’s 2011 AT&T Mobility LLC v. Concepcion ruling, which asserted federal preemption of state public policy favoring...

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