Justices’ Arbitration Ruling Allows California Law Survival (1)

The US Supreme Court limited the reach of a unique California law allowing employees to sue over workplace violations in place of the state, while leaving the door open for state courts or lawmakers to restore it.

The Federal Arbitration Act, which governs private dispute resolution contracts, requires that an arbitration agreement can apply to an individual worker’s claims under California’s Private Attorneys General Act, separating them from claims the worker was litigating on behalf of others, the justices ruled Wednesday.

The decision overturned the prohibition on dividing PAGA claims that stemmed from a 2014 California Supreme Court ruling that ...