PAGA Plaintiffs Can Still Pursue Representative Claims Despite Individual Arbitration

Seyfarth Synopsis: The California Supreme Court has held that a plaintiff whose individual PAGA claims are compelled to arbitration retains standing to pursue representative PAGA claims in court. Adolph v. Uber Technologies, Inc.

The Facts

Erik Adolph worked as a driver for Uber, delivering food to customers through the Uber Eats platform. In connection with his performance of services on the platform, Adolph executed an agreement to arbitrate on an individual basis only "almost all work-related claims he might have against Uber."

With respect to PAGA claims, the agreement provided that Adolph would not "bring a representative action on behalf of others under [PAGA] in any court or in arbitration" (the "PAGA Waiver"). The agreement also contained a severability clause requiring enforcement of any lawful portion of the agreement (including the PAGA Waiver) regardless of the unenforceability of any other portion.