Episode 64: PAGA - What just happened here?
With the California Private Attorneys General Act in the news again after the Supreme Court decision on Viking River Cruises, Inc. v. Moriana, Brian and Shant dive into what the decision means for the future of PAGA and how it may be enforced now that the Federal Arbitration Act can preempt the California law in certain situations.
They also discuss what might happen if enough signatures are collected to put PAGA on the chopping block in the 2024 election, including legislative compromises that would keep PAGA intact but attempt to reduce abuses, particularly those aimed at small businesses.
Lastly, Brian and Shant discuss a ruling by the California Fourth District Court of Appeals in the case, Estrada v. Royalty Carpet Mills, Inc., which held that PAGA cases could not be dismissed by the court because of manageability issues, which is in direct opposition to the Second District Court’s ruling in Wesson v. Staples the Office Superstore, LLC in 2021.
Since PAGA claims are meant to act in the stead of the California Labor & Workforce Development Agency, the court said that cases cannot be thrown out due to manageability concerns because, “the LWDA is not subject to a manageability requirement when it investigates Labor Code violations and assesses fines internally,” thus PAGA claims can not be subject to manageability requirements either.
The case will now head to the California Supreme Court and Brian and Shant give their predictions on where the court will land.