The California Chamber of Commerce issued the following statement on the U.S. Supreme Court’s decision today in the case of Viking River Cruises, Inc. v. Moriana, which ruled that individual claims under the Private Attorneys General Act (PAGA) can be compelled to arbitration if the employee signed a valid arbitration agreement to that effect:
“We are pleased but not surprised by the Supreme Court’s 8-1 ruling in this case. The Court has consistently recognized that the Federal Arbitration Act (FAA) preempts California legislation or case law for claims that are subject to an arbitration agreement. As the Court pointed out, California’s PAGA law unduly circumscribes the freedom of parties to determine the issues subject to arbitration and the rules by which they will arbitrate. Businesses, workers and consumers will benefit from this ruling going forward.”
The Supreme Court’s opinion can be found here.
The California Chamber of Commerce (CalChamber) is the largest broad-based business advocate to government in California. Membership represents one-quarter of the private sector jobs in California and includes firms of all sizes and companies from every industry within the state. Leveraging our front-line knowledge of laws and regulations, we provide products and services to help businesses comply with both federal and state law. CalChamber, a not-for-profit organization with roots dating to 1890, promotes international trade and investment in order to stimulate California’s economy and create jobs. Please visit our website at www.calchamber.com