Skip to main content

Nixon Peabody LLP

  • People
  • Capabilities
  • Insights
  • About
Trending Topics
    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni
    Practices

    View All

    • Affordable Housing
    • Community Development Finance
    • Corporate & Finance
    • Cybersecurity & Privacy
    • Entertainment & Media
    • Environmental
    • Franchising & Distribution
    • Government Investigations & White Collar Defense
    • Healthcare
    • Intellectual Property
    • International Services
    • Labor, Employment, and Benefits
    • Litigation
    • Private Wealth & Advisory
    • Project Finance
    • Public Finance
    • Real Estate
    • Regulatory & Government Relations
    Industries

    View All

    • Aviation
    • Cannabis
    • Consumer
    • Energy
    • Financial Services
    • Healthcare
    • Higher Education
    • Infrastructure
    • Manufacturing
    • Nonprofit Organizations
    • Real Estate
    • Sports & Stadiums
    • Technology
    Value-Added Services

    View All

    • Alternative Fee Arrangements

      Developing innovative pricing structures and alternative fee agreement models that deliver additional value for our clients.

    • Continuing Education

      Advancing professional knowledge and offering credits for attorneys, staff and other professionals.

    • Crisis Advisory

      Helping clients respond correctly when a crisis occurs.

    • DEI Strategic Services

      Providing our clients with legal, strategic, and practical advice to make transformational changes in their organizations.

    • eDiscovery

      Leveraging law and technology to deliver sound solutions.

    • Environmental, Social, and Governance (ESG)

      We help clients create positive return on investments in people, products, and the planet.

    • Global Services

      Delivering seamless service through partnerships across the globe.

    • Innovation

      Leveraging leading-edge technology to guide change and create seamless, collaborative experiences for clients and attorneys.

    • IPED

      Industry-leading conferences focused on affordable housing, tax credits, and more.

    • Legal Project Management

      Providing actionable information to support strategic decision-making.

    • Legally Green

      Teaming with clients to advance sustainable projects, mitigate the effects of climate change, and protect our planet.

    • Nixon Peabody Trust Company

      Offering a range of investment management and fiduciary services.

    • NP Capital Connector

      Bringing together companies and investors for tomorrow’s new deals.

    • NP Second Opinion

      Offering fresh insights on cases that are delayed, over budget, or off-target from the desired resolution.

    • NP Trial

      Courtroom-ready lawyers who can resolve disputes early on clients’ terms or prevail at trial before a judge or jury.

    • Social Impact

      Creating positive impact in our communities through increasing equity, access, and opportunity.

    • Women in Dealmaking

      We provide strategic counsel on complex corporate transactions and unite dynamic women in the dealmaking arena.

    1. Home
    2. Insights
    3. Alerts
    4. California Supreme Court holds PAGA plaintiffs may pursue in-court lawsuits after arbitration in some circumstances

      Alerts

    Alert / Labor & Employment

    California Supreme Court holds PAGA plaintiffs may pursue in-court lawsuits after arbitration in some circumstances

    July 17, 2023

    LinkedInX (Twitter)EmailCopy URL

    By Alejandro “Alex” Castro

    Adolph v. Uber holds PAGA plaintiffs do not automatically lose standing by being sent to individual arbitration.

    What’s the impact?

    • The California Supreme Court resolved the open question left by Viking River Cruises v. Moriana regarding the interplay between the Federal Arbitration Act and PAGA standing.
    • Employers in California should still seek to enforce arbitration agreements with representative action waivers when they think they have facts to prove that a potential PAGA plaintiff was not aggrieved in any way.

    DOWNLOAD

    PDF: California Supreme Court holds PAGA plaintiffs may pursue in-court lawsuits after arbitration

    The long-awaited Adolph v. Uber decision came down on July 17, 2023, which deals with the question: “What happens to an employee’s representative (i.e., on behalf of others) PAGA claim after being compelled to individual arbitration under Viking River?”

    Due to complexities created by the interplay of both in-court and arbitration forums, the above question breaks down into two separate questions—the first deals with “standing” and the second deals with “order of operations.”

    Question (Standing): What happens if the arbitrator determines that a plaintiff is not an “aggrieved employee” under PAGA?

    Answer: The arbitrator’s determination is binding—provided it is reduced to a final judgment and the court confirms the arbitration award. In the words of the California Supreme Court:

    Following the arbitrator’s decision, any party may petition the court to confirm or vacate the arbitration award under section 1285 of the Code of Civil Procedure. If the arbitrator determines that Adolph is an aggrieved employee in the process of adjudicating his individual PAGA claim, that determination, if confirmed and reduced to a final judgment (Code Civ. Proc., § 1287.4), would be binding on the court, and Adolph would continue to have standing to litigate his non-individual claims.

    […]

    If the arbitrator determines that Adolph is not an aggrieved employee and the court confirms that determination and reduces it to a final judgment, the court will give effect to that finding, and Adolph could no longer prosecute his non-individual claims due to lack of standing.]

    (See Op. @ 17.)

    Question (Order of Operations): What happens to the in-court PAGA lawsuit (i.e., the group of employees) while either the fight to enforce, or the arbitration itself, is unfolding?

    Answer: “The trial court may exercise its discretion to stay the non-individual claims pending the outcome of the arbitration pursuant to section 1281.4 of the Code of Civil Procedure.” (See Op. @ 17.)

    While the California Supreme Court did not mandate that trial courts should stay the “representative” (i.e., in-court group the plaintiff hopes to represent), it was clear that trial courts should not run afoul of the U.S. Supreme Court’s rule in Viking River that, “in cases where the FAA applies, no such relitigating [of standing] may occur.” (See Op. @ 17.)

    Practical Implications for California Employers

    Adolph v. Uber is the latest, and perhaps penultimate, case in a long line of California state and federal Supreme Court decisions regarding the interplay between the Federal Arbitration Act and California’s Private Attorney Generals Act.

    While not the best outcome for employers, Adolph leaves open the door for employers with good policies, practices, and workplace cultures (i.e., good facts) to defeat would-be PAGA representative actions (which are often cost-prohibitive to defend) through vigorous enforcement of well-drafted arbitration agreements and the thorough and aggressive pursuit of a “not aggrieved” finding in arbitration—even if that it is the (often) heavy haul of proving that the employee suffered absolutely no violations.

    Conclusion

    Nixon Peabody attorneys have extensive experience enforcing arbitration agreements, litigating PAGA lawsuits in court and arbitral forums, as well as how to comply with California’s extensive patchwork of obligations that can lead to these kinds of claims.

    If you have questions about the Adolph decision, an arbitration agreement, or an anticipated or existing PAGA lawsuit (or arbitration), please reach out to the authors of this article for more information.

    Locations

    Los AngelesSan Francisco

    Practices

    Labor, Employment & BenefitsLabor & Employment LitigationCalifornia Labor & EmploymentLabor Relations

    Insights And Happenings

    • Alert

      California minimum wage increases to $16.00 in 2024 for most employers

      Dec 29, 2023
    • Alert

      Looking ahead — New laws for California employers in 2024

      Dec 12, 2023
    • Alert

      Update—Deadline extension for California’s minimum wage law for healthcare workers

      Oct 30, 2023
    The foregoing has been prepared for the general information of clients and friends of the firm. It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel. If you have any questions or require any further information regarding these or other related matters, please contact your regular Nixon Peabody LLP representative. This material may be considered advertising under certain rules of professional conduct.

    Subscribe to stay informed of the latest legal news, alerts, and business trends.Subscribe

    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni
    • Cookie Preferences
    • Privacy Policy
    • Terms of Use
    • Accessibility Statement
    • Statement of Client Rights
    • Purchase Order Terms & Conditions
    • Nixon Peabody International LLC
    • PAL
    © 2025 Nixon Peabody. All rights reserved