New Arbitration & PAGA Case

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Arbitration & PAGA

Under California law, a PAGA claim cannot typically be sent to arbitration. But, like so many other rules in the law, this rule is not absolute. Last month, the Second District Court of Appeal published a decision addressing this issue. To find out what they decided, watch the video above and read my summary of the case below.

New Arbitration and PAGA Decision  

Oswald v. Murray Plumbing & Heating Corp. (2022) _ Cal.App.5th _ , 2022 WL 4008088: The Court of Appeal reversed the trial court's order denying defendant's motion to compel arbitration in plaintiff's lawsuit alleging violations of the Private Attorneys General Act (PAGA; Labor Code, section 2698 et seq.). While the right to file a PAGA action generally cannot be waived by contract, the Labor Code exempts construction workers from PAGA if a collective bargaining agreement (CBA)covers wages, hours and working conditions and (1) has a grievance and arbitration procedure to redress Labor Code violations; (2) clearly waives PAGA; and (3) authorizes the arbitrator to award all remedies available under the Labor Code. (Labor Code, section 2699.6(a).) The employment relationship between plaintiff and defendant was governed by a Master Agreement (Agreement) between plaintiff's union and defendant's contractor association, effective from 2017 to 2026. The Agreement was a CBA requiring arbitration of disputes—including ones arising under PAGA—as the sole and exclusive remedy. The Court of Appeal held, as a matter of law, that the CBA clearly waived PAGA and satisfied the requirements of Labor Code section 2699.6(a). The trial court was ordered to enter an order directing the parties to arbitrate their dispute. (C.A. 2nd, September 2, 2022.) 

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Mediation, Arbitration & Referee Services

I help attorneys and their clients settle cases as a mediator, and decide cases or issues as an arbitrator or referee at ADR Services, Inc. I handle cases in the areas of business, employment, insurance bad faith, insurance coverage, legal malpractice, medical malpractice, personal injury, real property and wrongful death. I conduct Zoom and in-person hearings throughout California.
To schedule a matter, please contact my case managers at ADR Services, Inc., Haward Cho, (213) 683-1600, [email protected] or Rachael Boughan, (619) 233-1323, 
[email protected]. 

Stay safe and healthy.

Best regards,
Monty A. McIntyre, Esq.
California Case Summaries™
Mediator, Arbitrator & Referee
Master Lawyer Mentoring™
CA Civil Trial Attorney Since 1980
ABOTA Member Since 1995
Past President San Diego County Bar Assn., SD ABOTA Chapter
Phone: (619) 990-4312.
Email: [email protected]