Reinstate Challenge to California Private AG Law, Group Says

A business group’s constitutional challenge to California’s law that deputizes workers to sue on the state’s behalf poses a separation of powers issue that hasn’t yet been decided by the state’s top court and should be revived, the group told a state appellate court.

California’s Private Attorneys General Act allows workers to step into the shoes of a state enforcement agency and represent other workers hurt by alleged labor law violations. Although similar in ways to class actions, PAGA claims aren’t subject to employment contracts that include agreements to resolve disputes only in individual arbitration.

The California Business and Industrial ...