CarMax Workers Say PAGA Claims Can't Be Arbitrated

Law360, Los Angeles (August 5, 2014, 6:00 PM EDT) -- Plaintiffs in a federal putative wage class action against CarMax Auto Superstores California LLC pushed back Monday against accusations they were avoiding an arbitration order by filing new state claims, saying the state claims could not be arbitrated after the California Supreme Court’s landmark Iskanian decision.

Both suits accuse CarMax of underpaying its mechanics, detailers and other piece-rate employees. But the plaintiffs are now seeking statutory penalties under the Private Attorneys General Act, which allows them to bring a suit on behalf of the Labor Workforce Development Agency.

CarMax argued last week that the employees were filing duplicative suits in an...

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