California Supreme Court to Review Decision that Could Subject Employers to More Suits Under California's "Sue Your Boss" Law
Most California employers are aware of California's Private Attorneys General Act (“PAGA”) (also known as the “Sue Your Boss” or “Bounty Hunter” law), which allows plaintiffs to bring representative claims on behalf of themselves and other employees for alleged Labor Code violations. Successful plaintiffs can recover up to $100 per employee for an initial violation, and $200 per employee per pay period for subsequent violations. Recently, the California Supreme Court granted a petition for review in Arias v. Superior Court of San Joaquin County (Angelo Dairy), a case that has the potential to greatly increase the number of suits brought against employers under PAGA.
In Arias, plaintiff sued his former employer, alleging PAGA claims for various Labor Code violations, including claims for unpaid overtime and denial of meal periods and rest breaks. The appellate court determined, among other things, that a PAGA-plaintiff may bring an action on behalf of himself and other employees without satisfying the requirements for a class action, which is what the employer had argued should be required. This decision raises the possibility that PAGA may provide a new avenue for the kind of representative actions that Proposition 64 (requiring that actions brought under the state's Unfair Competition Law comport with class requirements) sought to curtail. Specifically, if plaintiffs do not have to face the many hurdles presented by the class certification process, it will be far easier for them to bring representative claims again their employers for alleged violations of the Labor Code.
The California Supreme Court’s decision in this matter is one that may well determine whether California employers face a new wave of representative claims under PAGA. Please contact us directly to discuss any questions you have regarding the effect the grant of review may have on your workplace.