Lawson v. ZB, N.A. - The Dispute Over Arbitrability of PAGA Claims Continues

In Lawson v. ZB, N.A., 18 Cal. App. 5th 705 (2017), Plaintiff asserted various wage and hour claims and a California Private Attorneys General Act ("PAGA") claim against Defendant employer seeking penalties and underpaid wages pursuant to Cal. Labor Code § 558. Defendant moved to compel arbitration of Plaintiff's individual claims and her Cal. Labor Code § 558 claim for underpaid wages pursuant to an arbitration agreement whereby Plaintiff waived her right to bring a class or representative action. The trial court granted Defendant's motion pursuant to Esparza v. KS Industries, L.P., 13 Cal. App. 5th 1228 (2017). Plaintiff filed a petition for writ of mandate challenging the trial court's order. 

The California Court of Appeal, "respectfully part[ing] company with" (i.e., rejecting) Esparza, granted Plaintiff's petition and ordered the trial court to vacate its order. Lawson, 108 Cal. App. 5th at 722, 725 ("the trial court's order bifurcating [Plaintiff's] PAGA claims between the denominated assessments and underpaid wages was erroneous."). The Court of Appeal reasoned that "because, prior to enactment of PAGA there was no private remedy under section 558," the underpaid wages claim was only recoverable pursuant to PAGA, "indivisible" from "section 558 [] claims for civil penalties" and therefore, not arbitrable Id. at 724-725.

If you have any questions about the enforceability of arbitration agreements as to particular employment related claims, please contact Kiara W. Gebhart, Esq., or any of the attorneys at Shulman Bastian Friedman & Bui LLP at (949) 340-3400.

No Comments

Leave a comment
Comment Information
  • NBLSC Board Certified Lawyer Rated By Super Lawyers | Ryan P. Durham Rated By Super Lawyers | Ben Boston
  • Tennessee Association For Justice | Member 2015-2016 American Association For Premier DUI Attorneys The National Trial Lawyers | Top 100 Trial Lawyers
  • American Institute of Family Law Attorneys | 10 best 2015 American Institute of Personal Injury attorneys | 10 best 2016 AV preeminent |  Jeffery Broker

Schedule a Consultation Today

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Shulman Bastian LLP | Full Service. Business. Lawyers.

100 Spectrum Center Drive
Suite 600
Irvine, CA 92618

Map & Directions

3550 Vine Street
Suite 210
Riverside, CA 92507

Map & Directions