View Author June 2014
In another long-awaited decision that businesses hoped would clarify the enforcement of arbitration agreements under California law, on Monday, June 23, 2014 the California Supreme Court in Iskanian v. CLS Transportation split on the two issues before it. The California high court held that class action waivers in arbitration agreements are enforceable, but that waivers of proceeding on a representative basis on claims under the Labor Code Private Attorneys General Act of 2004 (PAGA) are not enforceable. The decision upholding class action waivers is good news for companies across a wide spectrum of business. But the different result for PAGA representative claims may result in more PAGA lawsuits against employers – and further complicated procedural gymnastics.