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Tag Archives: Iskanian

The California Supreme Court Clarifies Wages are NOT Part of the “Civil Penalty” under Labor Code Section 558 in a PAGA Action

Posted in Employment Contracts and Agreements, Labor Law, New Legislation and Regulations, Wage & Hour

On September 12, 2019, the California Supreme Court issued it decision in ZB, N.A., and Zions Bancorporation v. Superior Court [Lawson, real party in interest] (“Lawson”).  In analyzing whether the Plaintiff’s lawsuit could be compelled to binding arbitration under the arbitration agreement she entered into with her employer, the Supreme Court clarified that under Labor… Continue Reading

Arbitration Agreements Can Backfire on Employers

Posted in Employment Contracts and Agreements, Labor Law, Wage & Hour

It is no secret that arbitration agreements may greatly reduce the risks that many employers face in disputes with employees.  For example, when used correctly, such agreements can curb exposure to class actions by forcing employees to arbitrate disputes on an individual basis instead of a class basis.  See, e.g., Iskanian v. CLS Transportation Los… Continue Reading

U.S. Supreme Court Declines Review of California’s Iskanian Decision – California State and Federal Courts Remain Divided on PAGA Waivers

Posted in Employment Contracts and Agreements, Labor Law, Wage & Hour

The U.S. Supreme Court has declined to review California high court’s landmark decision in Iskanian v. CLS Transportation Los Angeles, which held that arbitration agreements with mandatory class waivers are generally enforceable, but carved out an exception for the state’s Private Attorney General Act (“PAGA”) claims. As discussed in our prior blog post, The New… Continue Reading

The New PAGA-Waiver Trap Door

Posted in Employment Contracts and Agreements, Labor Law, Wage & Hour

Many employers have arbitration agreements wherein employees agree to waive the right to file a lawsuit against the employer under various laws, including the California’s Private Attorney General Act (“PAGA”).  Employers were disappointed when the California Supreme Court ruled last June that such waivers of PAGA lawsuits are invalid, at least in state court.  See… Continue Reading