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U.S. Supreme Court: Arbitration Agreements Can Include Enforceable PAGA Waivers!

In what will be one of the biggest wins for California employers this year, the U.S. Supreme Court has ruled that waivers of employees’ individual claims under California’s Private Attorneys General Act of 2004 (PAGA) are enforceable. The court’s decision in Viking River Cruises, Inc. v. Moriana, released on June 15, 2022, offers employers a lifeline in avoiding PAGA litigation.

For many years, employers operating in California have suffered a barrage of costly lawsuits brought under PAGA. The Viking River decision gives employers the most effective means of protecting themselves from PAGA since the enactment of the law.

However, in order to take advantage of the Viking River ruling, employers must bring their arbitration agreements in line with the decision and take additional steps. See our in depth discussion of the ruling and recommended employer action items in our Alert found here.

For advice specific to your workplace, please contact the author or your Fox Rothschild LLP counsel.

This post provides general information and does not constitute legal advice to any person with respect to any circumstance.  This post does not create an attorney-client relationship with any person. 

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