Whether the Federal Arbitration Act requires enforcement of a bilateral arbitration agreement providing that an employee cannot raise representative claims, including under the Private Attorneys General Act (PAGA).
June 14, 2021
The Restaurant Law Center filed an amicus curiae brief in support of petitioner.
February 7, 2022
The Restaurant Law Center filed a brief in support of Petitioner. Restaurants in California are seeing an explosion of PAGA claims specifically because the California Supreme Court opened a back door to skirt recent U.S. Supreme Court rulings and evade agreements to arbitrate. The Law Center is urging the U.S. Supreme Court to firmly and swiftly shut this back door for good. Unless it bridles the defiance to arbitration, the restaurant industry will continue to be inundated by PAGA claims and the often-unavoidable settlements chosen over the small chance of a devastating loss.
June 15, 2022
The U.S. Supreme Court held that a sales representative for the defendant could not get around his employment contract arbitration provision and pursue wage and hour claims in court. In a 8-1 decision, SCOTUS overturned the California Supreme Court holding that the state’s Private Attorneys General Act (PAGA) let workers sidestep arbitration agreements. SCOTUS held that the Federal Arbitration Act preempts the California Supreme Court ruling. PAGA deputizes workers to act on behalf of the state in Labor Code enforcement. Under the new ruling, many claims will now be kicked out of court and sent to arbitration.