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California’s Private Attorneys General Act of 2004 (“PAGA”) allows employees to act as an “agent” of the State of California and recover civil penalties for violations of the Labor Code through a civil action filed on behalf of themselves and other current or former employees. In Viking River Cruises, Inc. v. Moriana, the U.S. Supreme Court held that the Federal Arbitration Act partially preempted a California rule prohibiting employers from requiring their employees to enter into pre-dispute arbitration agreements that contractually waived the right to assert “representative” claims under PAGA. Viking River held that while California could validly prohibit pre-dispute arbitration agreements effecting “wholesale waivers” of PAGA claims, the Federal Arbitration Act preempts any rule against requiring employees to arbitrate their “individual” PAGA claims.…

Continue Reading Fording Viking River, Another California Court of Appeal Holds That PAGA Plaintiffs Maintain Standing to Pursue “Representative” Claims Even if Compelled to Arbitrate “Individual” Claims

On February 2, 2023, the California Court of Appeal issued an important follow-up decision to the United States Supreme Court’s decision in Viking River Cruises, Inc. v. Moriana, — U.S. —, 142 S. Ct. 1906 (2022). Galarsa v. Dolgen California, LLC, — Cal. Rptr. 3d — , 2023 WL 2212196 (2023),addresses whether a plaintiff alleging claims under the California Private Attorneys General Act of 2004 (PAGA) retains standing to assert claims premised on California Labor Code violations suffered by other employees when the claims arising from alleged violations suffered by the plaintiff are compelled to arbitration. The Court of Appeal ordered Galarsa published on February 24, 2023, making the decision binding on state trial courts for the time being.…

Continue Reading California Court of Appeal Holds That a PAGA Plaintiff Maintains Standing to Assert Representative Claims Even When Individual Claims Are Compelled to Arbitration

The California Court of Appeal in Meda v. AutoZone, Inc. recently reversed a trial court’s finding that an employer demonstrated it “provided” seats to its employees as a matter of law under California’s suitable seating requirement. This rule stems from subdivision 14(A) of the Wage Orders,[1] which provides that California employers must provide suitable seats to employees “when the nature of the work reasonably permits the use of seats.” In Kilby v. CVS Pharmacy, Inc., 63 Cal. 4th 1 (2016), the California Supreme Court set forth the fact-intensive framework and multiple factors in analyzing whether the “nature of the work reasonably permits the use of seat,” triggering the employer’s obligation to provide suitable seats. However, no published California authority had considered what steps employers must take to “provide” seats under subdivision 14(A).[2]…

Continue Reading Are You Sitting Down for This? California Court of Appeal Provides Further Guidance on Suitable Seating Claims

On March 23, 2022, the California Court of Appeal for the Fourth District in Estrada v. Royalty Carpet Mills, Inc., ruled that courts do not have authority to strike a claim under the Private Attorneys General Act (“PAGA”) due to a lack of manageability at trial. Estrada creates a split of authority with a pro-employer decision, Wesson v. Staples the Office Superstore, LLC, 68 Cal. App. 5th 746 (2021). The Court in Wesson found that trial courts have inherent authority to dismiss PAGA claims as unmanageable. Wesson was discussed in detail in a prior blog article.
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Continue Reading Split of Authority Emerges Regarding Whether Employers Can Dismiss PAGA Lawsuits on Manageability Grounds

On February 7, 2022 a California Court of Appeal issued its decision in Hutcheson v. The Superior Court of Alameda County (UBS Financial Services, Inc.).  The case addresses the relation back doctrine in the context of a Private Attorneys General Act of 2004 (the “PAGA”) lawsuit, and will have important consequences for PAGA cases moving forward.
Continue Reading Employers May Face an Expanded Liability Period in PAGA Suits Under the Relation Back Doctrine

On February 18, 2022, the California Court of Appeal issued its decision in Jill LaFace v. Ralphs Grocery Company, __ Cal. App. 5th __ (2022), that provides important guidance in two areas. First, the Court made clear that plaintiffs asserting a claim under the Private Attorneys General Act (PAGA) are not entitled to a jury trial. In addition, the Court affirmed the lower court’s ruling rejecting the plaintiff’s suitable seating claim and found that an employee cannot create a “lull in operation” to trigger the provision of a seat by remaining idle instead of performing other expected job duties.
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Continue Reading California Court of Appeal Makes Clear that PAGA Plaintiffs are not Entitled to a Jury Trial and Provides Helpful Guidance on Suitable Seating Claims

On November 30, 2021, the Court of Appeal, First Appellate District, issued an important opinion in Moniz v. Adecco USA, Inc., __ Cal. App. 5th __ (2021), which will impact employers facing PAGA lawsuits.  Moniz clarified several critical issues employers routinely face in PAGA litigation.  First, departing from Turrieta v. Lyft, Inc., 69 Cal. App. 5th 955 (2021), Moniz held that a deputized aggrieved employee challenging a PAGA settlement has appellate standing to challenge another PAGA settlement that would wipe out their ability to pursue a PAGA claim.  This may affect all employers facing more than one PAGA lawsuit at a time.  Second, Moniz held that claims are validly released if they relate to the same primary right as the claims listed in the PAGA letter that the aggrieved employee sends to the California Labor and Workforce Development Agency (the “LWDA”).  Finally, Moniz provided guidelines to assess whether a trial court should approve a PAGA settlement.
Continue Reading California Court of Appeal Provides Guidance, and Creates a Split, on Critical PAGA Issues

On September 9, 2021, California’s Court of Appeal issued an important decision in Wesson v. Staples The Office Superstore, LLC (“Wesson”), holding that trial courts have discretion to strike claims brought under the Private Attorneys General Act (“PAGA”) when a trial of the action would be unmanageable.  Unless the California Supreme Court grants review, Wesson will be binding upon California state courts and federal district courts.
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Continue Reading Manageability – a New Weapon to Stave Off Unmanageable PAGA Claims

In Esparza v. KS Industries, L.P., 2017 WL 3276363 (2017), the Fifth District Court of Appeal recently clarified the arbitrability of certain claims brought under the Private Attorneys General Act (“PAGA”).  Previously, in Iskanian v. CLS Transp. Los Angeles, LLC, 59 Cal.4th 348 (2014), the California Supreme Court held that PAGA representative actions for civil penalties are not subject to arbitration (the “Iskanian rule”). This decision led to a spate of actions by plaintiffs who signed valid and enforceable arbitration agreements asserting only PAGA claims, in an attempt to circumvent arbitration. This has been a significant hurdle to many employers, who have been forced to defend PAGA-only actions in civil court, despite the fact that their employees signed valid and enforceable arbitration agreements. Esparza offers a potential carve out to Iskanian that employers should be aware of.
Continue Reading Court Of Appeal Holds That Claims To Recover Wages Under Labor Code Section 558 Brought Through The Private Attorneys General Act May Be Arbitrated

The California Supreme Court issued its long awaited ruling in Williams v. Superior Court, in which it clarified the scope of discovery in actions brought under the Private Attorneys General Act of 2004, Labor Code § 2698 et seq., also known as PAGA. (Williams v. Superior Court, __ Cal.5th __ (July 13, 2017, S227228) (“Williams”).) At first glance employers may be concerned by the breadth of discovery the California Supreme Court permits under PAGA, however, in reality the case generally reaffirms the status quo by holding that the scope of discovery in PAGA actions is essentially the same as the scope of discovery in class actions. Specifically, the Court holds that as in class actions, the contact information of the individuals a PAGA plaintiff purports to represent is generally discoverable in the same manner as it has been for many years in wage and hour class actions. While trial courts cannot condition disclosure of employee contact information on the plaintiff making a prima facie showing on the merits of his claims, the same defenses that exist in class actions to such discovery also exist in PAGA actions. While the employer has a substantial burden of proof, the California Supreme Court reaffirmed that employers still have defenses based on undue burden and the need to protect employee privacy rights to limit such discovery. With the overall discussion of discovery issues, the Court also makes pronouncements that can be helpful to employers in other aspects of PAGA litigation, such as its statements indicating that a PAGA action must be manageable to proceed to trial.
Continue Reading California Supreme Court Reaffirms Broad Right to Discovery in PAGA Actions