California Court of Appeal Finds Arbitration Agreement with PAGA Waiver Unenforceable

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On March 10, 2009, the California Court of Appeal in Franco v. Athens Disposal Company, addressed the enforceability of a class action and "private attorney general" waiver clause in a written arbitration agreement signed by the plaintiff. The plaintiff filed his complaint as a potential class action under the California Labor Code and Private Attorneys General Act, alleging, among other claims, that he and a class of current and former employees were denied meal and rest breaks in violation of the California Labor Code. The court of appeal refused to enforce the arbitration agreement and remanded the case to the trial court for further proceedings.

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