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California Supreme Court Upholds Class Action Waivers in Employment Arbitration Agreements; Rules PAGA Waivers are Unenforceable

MSK Client Alert
June 26, 2014

On June 23, 2014, in a highly-anticipated decision, the California Supreme Court held that class action waivers in employment arbitration agreements are enforceable, but an employee’s right to bring a representative action under the Private Attorneys General Act of 2004 (PAGA) cannot be waived. This important decision provides employers with a powerful tool in fighting the onslaught of wage and hour and other employment class action lawsuits.

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