The long-awaited decision by the United States Supreme Court in Viking River Cruises, Inc. v. Moriana was issued on June 15, 2022, and brings some good news for California employers. In a sweeping decision, the Court held that employers may compel arbitration of “individual” claims under the California Private Attorney General Act (PAGA). As a result, employers that carefully craft their arbitration agreements may compel employees to bring PAGA claims in arbitration.
As you may be aware, PAGA enlists employees as private attorneys general to enforce the labor code. PAGA claims are very prevalent and very expensive to defend. In light of the Viking River decision, employment attorneys are recommending employers reconsider having an arbitration program to limit PAGA liability.
The bottom line: contact employment counsel asap to determine if you should implement an arbitration program or revise your current arbitration agreement in light of the Viking River case. If you need a referral to employment counsel, please contact your Silvers HR Consultant.