California Court of Appeal holds that Federal Arbitration Act does not prohibit “representative actions” under Private Attorney General Act.
In Brown v. Superior Court (Morgan Tire & Auto, LLC) 2013 WL 2449501 (2013), an employee brought putative class action against employer for violations of California’s wage and hour laws, seeking restitution, damages, and civil penalties on behalf of themselves and all other aggrieved employees as allowed by the Private Attorneys General Act (PAGA). The Superior Court, Santa Clara County, No. 110–CV178451, Peter H. Kirwan, J., granted employer’s petition to compel arbitration. Employee appealed. The Court of Appeal held that the Federal Arbitration Act did not preempt the right to pursue representative action against employers under PAGA.