California Supreme Court rules Uber driver whose contract required him to take disputes to arbitration could represent his peers in class-action suit.
After Uber and other gig giants failed to pay a mandated rate hike, two eagle-eyed drivers started asking questions — and won a jackpot for California gig workers.But Supreme Court Justice Sonia Sotomayor wrote a separate concurring opinion, stating that standing under PAGA was a matter of state, not federal, law and kicked the matter back to California.In the California Supreme Court opinion published Monday, Justice Goodwin H.
“The question here is whether an aggrieved employee who has been compelled to arbitrate claims under PAGA ... maintains statutory standing to pursue ‘PAGA claims arising out of events involving other employees’” Liu wrote. “We hold that the answer is yes.” California Atty. Gen. Rob Bonta’s office had supported Adolph’s position in a friend of the court brief, noting PAGA was “born out of a period of serious under-enforcement of the Labor Code that was disproportionately affecting some of the State’s most vulnerable workers.”
Under PAGA, any monetary recoveries won for violations such as failing to pay overtime is split between employees and the state Labor and Workforce Development Agency, with the government receiving 75% of funds.
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