Uber case has employers on edgeUber case has employers on edge

Oral argument in Adolph v. Uber Technologies is scheduled for May 9.

On that date, the California Supreme Court will hear arguments to determine if someone with an individual Private Attorneys General Act (PAGA) claim in arbitration can still serve as a representative on behalf of others for the broader PAGA claim.

This will define the scope of PAGA waivers in arbitration agreements, which has been a constant and costly headache for employers due to the expensive penalties for wage-and-hour violations.

The Adolph decision will significantly impact potential PAGA liability, but few expect the State Supreme Court to grant the relief California employers are hoping for.

PAGA authorizes aggrieved employees to file lawsuits to recover civil penalties on behalf of themselves, other employees, and the State of California for Labor Code violations, explains the state Department of Labor.

The California Supreme Court has 90 days after oral argument to issue its decision.

[Jason Resnick is senior vice president and general counsel for Western Growers.]

Source: Western Growers