Macy’s Case Brings PAGA Arbitration Issue Back to Ninth Circuit

A federal appeals court is continuing to grapple with what happens when an employee must arbitrate their individual claims brought under a unique California law that allows workers to sue on the state’s behalf.

A Macy’s Inc. subsidiary is challenging a lower court order sending both individual and representative claims for unpaid overtime and other alleged wage law violations that a former worker brought under California’s Private Attorneys General Act to arbitration. Attorneys for the company and the worker will appear at oral argument Friday at the US Court of Appeals for the Ninth Circuit.

The Ninth Circuit heard debate ...