The California Court of Appeal in Leeper v. Shipt, Inc., ruled that a PAGA action includes always an 'individual PAGA claim,' preventing avoidance of arbitration through purely representative actions.
Leeper relied on precedent that allowed plaintiffs to disclaim their 'individual PAGA claim' to avoid arbitration. The court clarified this interpretation is incorrect, solidifying the need for individual claims in PAGA actions.
The PAGA statute’s unambiguous text specifies that civil penalties are recoverable only by the employee plaintiff 'and other current or former employees,' nullifying claims that seek to exclude individual participation.
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