California Employers Get Lifeline in Unique State Labor Disputes

A new defense for employers facing worker claims under California’s unique PAGA labor law can be found in a recent concurring opinion by a Ninth Circuit judge, attorneys say.

The reasoning of Judge Kenneth Kiyul Lee in a Feb. 12 concurring opinion could help break the link between arbitrators’ rulings for individuals and court proceedings of large groups of claims.

Arbitration proceedings under PAGA might not qualify as a “full and fair opportunity to litigate,” Lee said about a case involving wage violation claims against Lowe’s Home Centers LLC.

Lee’s observation could allow employers to force individuals into arbitration with ...