On July 17, 2023, the California Supreme Court issued its highly anticipated ruling in Adolph v. Uber Technologies. The Court ruled in favor of the Plaintiff, holding that non-individual PAGA claims can remain in court even if individual claims are sent to arbitration.
In the wake of this decision, a proposed ballot measure that would eliminate the Labor Code Fair Pay and Employer Accountability Act (PAGA) is now eligible for the 2024 ballot. Proponents of the ballot measure believe that it is the only way to relieve employers from an influx of PAGA lawsuits, while others argue that a ballot measure is unnecessary, and that the Adolph decision does not leave employers defenseless against such claims.
"As a practical matter, killing PAGA should not be critically important for California employers, because it's very easily manageable with a sound employment arbitration policy," says Steve Katz, Constangy partner.
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