The California Supreme Court issued several important decisions in 2023 about issues such as COVID-19 take-home exposure and arbitrating Private Attorney General Act (PAGA) claims.

Employers should continue to be aware of several cases pending before the state’s high court. Here are the highlights and what these cases could mean for California employers.

PAGA

In a pair of cases decided by the Second Appellate District of the California Court of Appeal, the Court reiterated the difference between procedural and substantive unconscionability when it comes to invalidating arbitration agreements based on unconscionability: procedural unconscionability focuses on the fairness of the process leading to the formation of the agreement, whereas substantive

2022 brought several significant decisions from the California Supreme Court, from decisions about meal and rest period penalties to burden shifting for whistleblower retaliation claims.

Here are some of the cases currently pending before the state’s high court that employers should be watching and what they mean for employment law in the Golden State.

On June 15, 2022, the U.S. Supreme Court ruled in Viking River Cruises, Inc. v. Moriana that bilateral arbitration agreements governed by the Federal Arbitration Act (FAA) may require arbitration of California Private Attorneys General Act (PAGA) claims on an individual basis only.

In early July, Moriana, the named plaintiff-employee at the center of Viking

In December 2021, the U.S. Supreme Court agreed to hear arguments in Viking River Cruises v. Moriana (Viking). The question presented in Viking is whether the Federal Arbitration Act (FAA) requires enforcement of a bilateral arbitration agreement providing that an employee cannot raise representative claims, including representative claims under California’s Private Attorneys General Act (PAGA)

The Ninth Circuit Court of Appeals has ruled that an ex-Tinder employee must arbitrate her claims against her former employer and cannot pursue her claims in court, even though her claims arose before she executed an arbitration agreement. In reaching this decision, the Ninth Circuit not only enforced the broad language of the parties’ arbitration

California law is not typically seen as amiable to compelling employees to arbitrate their claims. However, in Franklin v. Community Regional Medical Center, ___ F.3d___(9th Cir. 2021), the Ninth Circuit panel upheld a motion to compel arbitration by a non-signatory to an arbitration agreement based on California law.

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2020 presented a myriad of challenges for California employers, including the constant march of California court opinions regarding the Private Attorneys General Act (PAGA) claims.

The California courts focused on two issues involving PAGA this year:

  • Can a Plaintiff proceed with their PAGA claim (standing)?
  • Can a Defendant compel arbitration when there is a PAGA

On September 28, 2020, Governor Newsom signed Senate Bill 1384, which (1) expands the California Labor Commissioner’s representation to arbitrations for claimants who cannot afford counsel, (2) requires employers to serve petitions to compel arbitration on the Labor Commissioner, and (3) allows the Labor Commissioner to represent claimants in proceedings to determine whether arbitration