Once in a Lifetime? Rare Battle Won for Golden State Employers – but the PAGA War Rages On
California’s highest court has ruled that “underpaid wages” are not recoverable under the Private Attorneys General Act. The decision marks big changes in the Wild West of litigation under the Act, yet many key questions remain unanswered. The authors of this article discuss the decision and its implications.
The California Supreme Court put an end to a nearly five-year debate regarding the permissible scope of recovery and arbitrability under California’s Private Attorneys General Act (“PAGA”), a statute that has left employers in the Golden State scratching their heads for over a decade. California’s highest court held that “underpaid wages” are not recoverable under PAGA. The decision, ZB, N.A. v. Superior Court (“Lawson”), marks big changes in the Wild West of PAGA litigation, yet many key questions remain unanswered.
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“Once in a Lifetime? Rare Battle Won for Golden State Employers – but the PAGA War Rages On,” by Caroline Powell Donelan and Taylor C. Morosco, was published in the Summer 2020 edition of the Employee Relations Law Journal (Vol. 46, No. 1). Reprinted with permission from Wolters Kluwer.
This article was first published in Blank Rome Workplace, Blank Rome’s Labor and Employment blog.