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California Court: Arbitration Agreement does not Override Statutory PAGA Rights

Non-exempt hourly auto workers filed a class action lawsuit alleging violations of various wage and hour laws, and sought penalties under California’s Private Attorneys General Act (PAGA). The employees had, however, executed the employer’s Employee Dispute Resolution Plan, which provides that all employment-related disputes must be submitted to mediation and arbitration. Employees waived any right they had to pursue, file, participate in, or be represented in disputes filed on a class basis or as a collective or representative action, and the agreement prohibited mediation or arbitration of disputes on a class basis or as a collective or representative action. More ›

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