Labor and Employment > The PAGA Report > US Supreme Court Overrules Key Holding of Iskanian Regarding Arbitrability of PAGA Claims
16 Jun '22

Akin Gump published a client alert on the U.S. Supreme Court’s much-anticipated decision in Viking River Cruises, Inc. v. Moriana, Case No. 20-1573. The Court held that the Federal Arbitration Act preempts a rule announced in Iskanian v. CLS Transportation Los Angeles, LLC, 59 Cal. 4th 348 (2014), that Private Attorneys General Act (PAGA) claims cannot be compelled to individual arbitration.

Explaining that PAGA allows aggregation of the both the named plaintiff’s claims and the claims of other employees, Viking River Cruises distinguished between the “individual” and “non-individual” claims brought in a PAGA action. It held that the “individual” claim may be compelled to arbitration, but left in place the Iskanian rule against compelled arbitration of the “non-individual” claims. Slip op. at 20. The Court also held that under its reading of state law, the “non-individual” claims cannot proceed in court if the individual claims have been compelled to arbitration. Id. at 21. Concurring opinions regarding the majority’s application of state law suggest that litigation over arbitration issues in PAGA cases may continue.

To read the full alert, please click here.