California employers enthusiastically received the decision by the United States Supreme Court in Viking River Cruises v. Moriana, 142 S. Ct. 1906 (2022). That case held the Federal Arbitration Act allows employers to compel employees to arbitrate the individual part of their claim under the California Labor Code Private Attorneys General Act ("PAGA"). Some employers hoped that Viking River Cruises would substantially rein in PAGA litigation.
PAGA authorizes aggrieved California employees to file lawsuits to recover civil penalties on behalf of themselves, other employees, and the State of California for violations of California's Labor Code. PAGA penalties can quickly accumulate given the many possible Labor Code violations and the fact that the default penalty is $100 per employee per pay period for an initial Labor Code violation, and $200 per...
