On June 15, 2022, the U.S. Supreme Court issued its highly anticipated decision in Viking River Cruises v. Moriana , No 20-15173, holding that arbitration agreements apply to employee claims brought under California’s Private Attorneys General Act (PAGA) and that individualized PAGA claims may be compelled to arbitration! This is a nice outcome for employers!
What it means: A valid arbitration agreement can now be used to (1) compel the plaintiff’s “individual” PAGA claim to arbitration and (2) to dismiss the “non-individual” PAGA claim.
California employers, however, should be aware that Viking River Cruises may not be the final word regarding the impact of arbitration agreements on PAGA claims.
If you need an arbitration agreement or need to update yours, reach out to us! For more information on the case Click Here.