On July 17, 2023, the California Supreme Court issued a ruling in Adolf v. Uber. The court ruled that if the lead Plaintiff signed an arbitration agreement, that Plaintiff must first arbitrate their claims individually. In the meantime, the court has discretion to put the class action on hold until the arbitrator makes a decision.
If the arbitrator determines that there are no labor code violations, it could potentially lead to the dismissal of the PAGA (Private Attorneys General Act) class action lawsuit. Conversely, if labor code violations are found by the arbitrator, the class action would resume.
While there is still gray regarding how lower courts will enforce this decision, it is crucial for all employees to have signed arbitration agreements to ensure that each employee’s individual claims are subject to arbitration. Additionally, it is important for arbitration agreements to comply with the law to ensure their validity and enforceability as a defense when needed.
DPA Attorneys at Law is offering a complimentary review of your current arbitration agreement to ensure compliance. Feel free to email a copy of your arbitration agreement to ppatel@dpalaw.com.
Should you have any further questions, reach out to us at 760-DPA-0007.
