Ken Sulzer, who heads Constangy's Los Angeles office, commented on a recent decision by the California Supreme Court that employees cannot sue on behalf of themselves and other workers for back wages under the Private Attorneys General Act (PAGA)
in recent years, plaintiffs attorneys had attempted to use PAGA to circumvent mandatory arbitration agreements. However, the state's high court said that unpaid wages are not penalties under PAGA and that employees cannot use PAGA to recoup them.
Sulzer noted that the decision makes it "now pretty clear the plaintiffs cannot seek these quite draconian damages."
The full article is available here.