On June 15, 2022, the Supreme Court issued an important decision in Viking River v. Moriana. The Viking River case has an impact on California employees and their ability to protect themselves and their fellow workers.

The Private Attorney Generals Act (“PAGA”) is a California law that allows employees to bring a lawsuit on behalf of the State against employers who violate California employee protections. In Viking River v. Moriana, the United States Supreme Court looked at whether the Federal Arbitration Act (“FAA”) had an impact on claims brought by employees under PAGA. Previous California law held that PAGA claims were shielded from the FAA and attempts to force employees into arbitration. The Supreme Court disagreed, deciding that the FAA does apply to PAGA claims. The decision means that most employees who do not opt out arbitration clauses may lose the ability to bring effective PAGA claims.

What can employees do? Employees should opt out of arbitration agreements whenever allowed. Arbitration agreements can come in the form of employment agreements or as part of the onboarding process for traditional jobs. It can also exist in the terms and conditions that gig workers must review and agree to when they use a gig company platform like DoorDash or Uber. Often times, arbitration agreements are in bold or capital letters. We advise employees to read the fine print and carefully follow the directions to opt out of arbitration agreements. This will ensure that employees retain their fundamental rights to seek workplace justice.

If you need assistance opting out or have any employment-related questions, please call us at (626) 240-0575.