July 18, 2023
The California Supreme Courtroom dominated an Uber Eats driver nonetheless has standing to sue below the state’s Non-public Attorneys Normal Act for a number of staff even when particular person PAGA claims are despatched by a courtroom to arbitration. Some have described this as a strike in opposition to arbitration agreements.
“The ruling in Erik Adolph v. Uber Applied sciences, Inc., S274671, represents a serious blow to California employers who had hoped to make use of employment-based arbitration agreements to maintain PAGA litigation dangers below management,” based on a put up by regulation agency Atkinson, Andelson, Loya, Ruud and Romo.
California’s Non-public Attorneys Normal Act permits staff to sue an employer on behalf of the state for Labor Code violations.
On this case, plaintiff Erik Adolph labored as a driver for Uber Eats and had first filed a lawsuit in October 2019 claiming misclassification as an unbiased contractor. A trial courtroom later granted a movement by Uber to compel particular person arbitration and dismissed Adolph’s class motion claims — Adolph had signed an settlement requiring particular person arbitration. Nonetheless, Adolph filed a second amended grievance which eradicated particular person and class-action Labor Code claims with solely his PAGA claims remaining.
The California Supreme Courtroom dominated there was nonetheless standing for the nonindividual claims to proceed.
“In sum, the place a plaintiff has filed a PAGA motion comprised of particular person and nonindividual claims, an order compelling arbitration of particular person claims doesn’t strip the plaintiff of standing to litigate nonindividual claims in courtroom,” based on the opinion.
Uber is contemplating the choices for enchantment.
“The California Supreme Courtroom’s determination contravenes the US Supreme Courtroom’s holding in Viking River, violates the Federal Arbitration Act, and undermines the legislature’s intent in enacting PAGA. We’re contemplating our appellate choices,” Theane Evangelis, counsel for Uber, stated in an announcement to SIA.
