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Supreme Court Leaves California’s Carve-Out for PAGA Wage-and-Hour Representative Actions Intact

The U.S. Supreme Court has denied certification of a petition challenging the California Supreme Court’s ruling in Iskanian v. CLS Transportation Los Angeles, LLC, 59 Cal. 4th 348 (2014) that representative Private Attorneys General Act (PAGA) claims cannot be waived in employment arbitration agreements. As a result, California’s carve-out exempting PAGA claims from arbitration agreements remains intact, and employees can continue to bring PAGA representative actions even if they have signed arbitration agreements with class and representative action waivers. California employers should brace for the continuation of representative PAGA court cases notwithstanding otherwise valid arbitration provisions. For a more detailed discussion of this issue click here for our Labor Alert.


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