On September 12, 2019, the California Supreme Court issued its
decision in ZB, N.A. v. Superior Court, which
resolved a split of authority regarding whether an employer may
compel arbitration of an employee's Private Attorneys General
Act ("PAGA") claim seeking unpaid wages under Labor Code
section 558. In reaching its conclusion, the Court first answered
the "more fundamental question" of whether a plaintiff
may seek unpaid wages under PAGA: to which the answer is no.
Therefore, ZB's motion to compel arbitration should have been
denied.
Background and Procedural History
In February 2016, Kalethia Lawson filed a complaint against her
former employer alleging it violated a host of labor laws and
regulations regarding overtime, meal and rest periods, minimum
wages, final pay, timely pay, accurate wage statements, payroll
records and expense reimbursement. Lawson alleged she was acting as
a PAGA representative and was entitled to recover penalties under
section 558,
