California Employers Get Partial Win at Top Court on Arbitration

The US Supreme Court limited the use of a California law authorizing group lawsuits on behalf of employees in a partial victory for businesses seeking to funnel worker disputes into arbitration.

In an 8-1 ruling Wednesday, the justices said workers can’t press group lawsuits under the California Private Attorneys General Act, known as PAGA, if they previously agreed to send any employment disputes to individual arbitration proceedings. The court, however, left open the possibility that the state could amend its law to allow group suits in those circumstances.

The decision is a victory for Viking River Cruises Inc. in its ...