The California Supreme Court ruled on June 23, 2014 that PAGA claims are not preempted by the FAA. Eric Kingsley wrote a column in Daily Journal on June 27, 2014 describing the impact of the decision. In the article he described the reasons why PAGA is so effective. It all comes down to the 4 “uns.”
- PAGA is unarbitable. (Plaintiffs can't be forced in arbitration)
- PAGA is unremovable. (Defendants can not remove the case to Federal Court)
- PAGA is unpickoffable. (Settlement must be approved by the court)
- PAGA is uncertifiable. (Certification is optional, Trial is therefore inevitable)
These four attributes make it an effective vehicle for plaintiffs and a concern for defendants.
By the end of the year we should know if SCOTUS intends to pick up the case which I predict they will not.
To discuss this topic in further detail please feel free to contact leading California employment lawyers at Kingsley & Kingsley. Call toll-free at (888) 500-8469 or click here to contact us.
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Additional information on this topic from Kingsley & Kingsley:
PAGE-Claims: The Future of Wage & Hour?: Very few courts have taken up the issue of the PAGA claim. While the law has been on the books for close to 10 years, PAGA was not initially embraced by the private bar. Many practitioners saw it as an annoyance to have to wait the 33 days before amending. Furthermore, at the conclusion of the case some amount would have to be allocated to the state. This drove people away and claims were not brought.
PAGE-Claims: How much is allocated to the State of California in Private Attorney General Act claims? In a recent case handled by Kingsley & Kingsley, a case settled for $1,500,000 and over $400,000 of the claim was allocated to the Private Attorney General Act.
The California lawyers with Kingsley & Kingsley have the experience, ability, and desire to successfully navigate the legal process with you. For a free initial consultation, don't hesitate to call our toll free number (888) 500-8469 or click here to contact us regarding your case.