PAGA Issue Will Continue To Percolate Through Federal Courts.
The United States Supreme Court today denied the petition for a writ of certiorari brought by CLS Transportation Los Angeles, LLC, No. 14-341. Left intact, for now, is the California Supreme Court’s holding in Iskanian v. CLS Transportation Los Angeles, LLC, 59 Cal.4th 348 (2014), that the Federal Arbitration Act does not preempt a state law that prohibits waiver of PAGA representative actions in an employment contract.
The denial of the petition should not come as a great shock. There was no conflict among decisions of state supreme courts or federal courts of appeal.
However, the issue is percolating through the federal district courts in California, and the outcomes have been mixed. The issue is also pending in the Ninth Circuit in Hopkins v. BCI Coca Cola Bottling Co., No. 13-56126.