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LOS ANGELES (Legal Newsline) – Plaintiffs using California’s Private Attorneys General Act to sue their employers can’t be sent to arbitration to decide if the case will go to arbitration, a California appeals court recently ruled.
On March 1, the Second Appellate District ruled against Zum Services, which is accused of misclassifying the plaintiffs and others as independent contractors. The company, a transportation service for children, tried to invoke an arbitration clause in their employment agreements, but the appeals court overturned a trial court ruling for Zum.
Letting an arbitrator decide whether the plaintiffs are “aggrieved employees” entitled to make PAGA claims goes against the purpose of the PAGA, the court ruled.