The U.S. Supreme Court has refused to review the California Supreme Court Decision in Iskanian v. CLS Transportation Los Angeles, LLC (S204032, June 23, 2014) in which the state’s highest court ruled that the Federal Arbitration Act (FAA) preempted California’s policy against enforcement of class-action waivers on the grounds that they were contrary to public policy or unconscionable. However, the Court refused to find that the FAA preempted representative action waivers as applicable to the Labor Code Private Attorneys General Act of 2004 (PAGA).
As a result, the state court’s decision stands: Employer arbitration agreements may bar class actions, but not PAGA representative actions.
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