On June 15, 2022, the Supreme Court of the United States finally issued its long-awaited decision in Viking River Cruises, Inc. v. Moriana. The Court partially overturned Iskanian v. CLS Transportation Los Angeles, LLC (Iskanian), determining that the Federal Arbitration Act (FAA) preempts the aspect of Iskanian’s holding that precludes the division of Private Attorneys General Act of 2004 (PAGA) actions into individual and non-individual claims through an agreement to arbitrate. Meaning, if an employee subject to a valid arbitration agreement brings a PAGA claim, then the employee’s individual PAGA claim must be adjudicated in arbitration. (The individual aspect of the PAGA claim refers to violations of the Labor Code actually suffered by the plaintiff, whereas the non-individual “representative” aspect of the PAGA claim refers to the violations the plaintiff has alleged on behalf of other employees.)
Supreme Court: An Employee’s Individual PAGA Claim Must Be Adjudicated in Arbitration
By Marjorie C. Soto Garcia and McDermott Will & Emery on July 21, 2022
Posted In Employment
Marjorie C. Soto GarciaMarjorie C. Soto Garcia’s labor and employment practice covers single plaintiff and class action litigation, employment counseling, traditional labor (including union activity and collective bargaining), and M&A and complex transactions. She regularly defends employers in state and federal lawsuits alleging discrimination, harassment, retaliation, wrongful termination, wage and hour violations, violations of the Fair Credit Reporting Act (FCRA), Private Attorney General Act (PAGA) actions and unfair labor practice charges under the National Labor Relations Act (NLRA). Marjorie is additionally experienced in managing complex transactions (including M&A), regularly providing clients with strategic advice on potential risks and practical, business-oriented solutions. She is also experienced in dealing with trade secret, confidentiality, non-compete and non-solicit matters in employment and separation contracts. Read Marjorie C. Soto Garcia's full bio.
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