Supreme Court Closes PAGA’s Backdoor to Avoid Arbitration Agreements

The Supreme Court made a ruling this week that should prove favorable to employers who use arbitration agreements in California. According to Fisher and Phillips – a law firm representing management in the areas of labor, employment, civil rights, employee benefits and immigration law – the ruling will allow employers to ‘enforce arbitration agreements in California to the extent they require an employee to arbitrate individual claims under the state’s Private Attorneys General Act (PAGA).’

PAGA permits employees to file lawsuits on behalf of themselves, other employees, and the State of California for Labor Code violations. However, this ruling means employers who use arbitration agreements in California should face fewer PAGA Labor Code violation claims.

Learn more about this ruling and what it means for employers from Fisher and Phillips here.

To contact Fisher and Phillips for more information, contact Jacob Villagomez at

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