From today’s SCOTUSblog:
he Supreme Court’s 2022 decision in Viking River Cruises v. Moriana was a victory for employers seeking to enforce mandatory arbitration clauses in the face of a landmark California worker-protection law. The court found that the California law was inconsistent with the federal arbitration law’s broad mandate that courts enforce arbitration agreements. This week, we highlight petitions that ask the court to consider, among other things, whether California courts are correct that the law, despite the decision in Viking River, nonetheless allows workers to keep disputes in court.
Twenty years ago, California enacted the Private Attorneys General Act, which allows workers to file lawsuits – on their own behalf and on behalf of other employees – against their employers for any violations of the California labor code. These lawsuits are known as representative actions because the employee is suing in place of the state, which receives the bulk of any money awarded as a result of the lawsuit; the remaining funds are distributed among affected workers.
Johnathon Gregg signed up to drive with Uber in California in 2016. When setting up his account, he did not opt out of Uber’s arbitration agreement, which asks drivers to waive their right to bring lawsuits under the PAGA, specifically, and agree more broadly to address disputes with Uber in arbitration, rather than in court, on an individual basis.
Two years later, Gregg filed a lawsuit in California state court. He argued that, under the PAGA, Uber had violated state law by classifying him and other drivers as independent contractors rather than employees.
Uber sought to enforce the arbitration agreement. The state courts ruled in favor of Gregg, following a decision by the California Supreme Court that voided mandatory arbitration agreements requiring workers to waive their rights under the PAGA.
Uber asked the justices to review the state court’s ruling. While its petition was pending, the court issued its decision in Viking River, holding that the PAGA is inconsistent with the Federal Arbitration Act’s sweeping requirement for courts to enforce arbitration agreements. An eight-justice majority ruled that, when an employment contract contains an arbitration clause, that clause must be enforced against an employee’s right to bring a claim on behalf of themselves under the PAGA.
Read the complete story here.