PAGA Paraphrased – Nickson v. Shemran, Inc., 90 Cal.App.5th 121 (2023)

Seyfarth Shaw LLP

Seyfarth Synopsis: The Fourth District joined the Second District in issuing another published decision holding that plaintiffs do not lose representative standing once their individual PAGA claims are compelled to arbitration.

The Court did not provide any guidance on whether the representative claims should be stayed, stating only that, “We leave management of the superior court litigation during the pendency of arbitration to the trial court’s sound discretion.”

While California’s courts of appeal appear set that PAGA Plaintiffs bound to arbitrate their individual claims retain standing to bring a representative PAGA claim in state court, the question of whether the representative claim must be stayed pursuant to C.C.P. § 1281.4 or otherwise remains without direct precedential authority.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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