In a complex 8–1 ruling, the U.S. Supreme Court ruled today that lawsuits brought under the California Private Attorney Generals Act that allows employees to sue for workplace violations on behalf of the state are partly pre-empted by the Federal Arbitration Act. The decision overturns a 2014 California court ruling under which PAGA could be used to circumvent arbitration agreements in certain cases.
PAGA has become a bonanza for California plaintiffs’ lawyers in recent years, and today’s ruling may curtail that activity. The case is Viking River Cruises Inc. v. Moriana. A copy of the decision is available at supremecourt.gov.
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