Currently, employers may lawfully require California employees to agree to arbitrate employment claims (except for sexual assault and harassment claims). However, the ability to mandate arbitration in the foreseeable future is in limbo. Understanding California’s Private Attorney General Act following the Viking River decision and AB 51, which is still on pause, is vital for employers awaiting direction on the state of mandatory arbitration.

The California Private Attorney General Act

PAGA gives employees the right to sue employers in a representative capacity for violations of the California Labor Code, which most often tend to be wage-and-hour violations. A 2014 California Supreme Court decision ruled that employers cannot require employees to arbitrate PAGA claims or waive their right to participate in a representative PAGA claim (where the plaintiff brings a claim on behalf of other employees who are victims of alleged Labor Code violations, similar to a class action lawsuit).

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