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    <title type="text">Rediger Labor Law</title>
    <subtitle type="text">Rediger Labor Law</subtitle>

    <updated>2026-04-09T13:42:56Z</updated>

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        <entry>
            <author>
									                    <name>On Behalf of Rediger Labor Law</name>
				            </author>
            <title type="html"><![CDATA[Can an at-will employee claim wrongful termination?]]></title>
            <link rel="alternate" type="text/html" href="https://www.rediger.law/blog/2023/05/can-an-at-will-employee-claim-wrongful-termination/" />
            <id>https://www.rediger.law/?p=47438</id>
            <updated>2023-05-04T21:49:24Z</updated>
            <published>2023-05-04T21:24:35Z</published>
					<taxo:topics><![CDATA[-]]></taxo:topics>
            <summary type="html"><![CDATA[When an employment relationship is “at-will,” it means that the employee and the employer can end the relationship at any time, with or without notice, and that the employer can sever the relationship for any lawful reason. Employment relationships are not “at-will” when they are governed by an employment contract with terms and conditions placed on terminations, such as a…]]></summary>
			                <content type="html" xml:base="https://www.rediger.law/blog/2023/05/can-an-at-will-employee-claim-wrongful-termination/"><![CDATA[When an employment relationship is "at-will," it means that the employee and the employer can end the relationship at any time, with or without notice, and that the employer can sever the relationship for any lawful reason. Employment relationships are not "at-will" when they are governed by an employment contract with terms and conditions placed on terminations, such as a collective bargaining agreement negotiated between the employer and a labor union. In those employment relationships, the employer generally must have "just cause" to terminate an employee.

So, is an at-will employee still able to claim wrongful termination? Yes. Here's why.
<h2>Terminated at-will employees may claim you violated their rights</h2>
While the concept of at-will employment is fairly straightforward, individuals who were at-will employees frequently file lawsuits against their former employers alleging they were terminated for an unlawful reason, such as discrimination. An employer cannot take an adverse employment action (i.e., termination, write-up, layoff, demotion, etc.) against an employee <span style="text-decoration: underline;">because</span> that person is a member of a protected group under the law. <a href="https://calcivilrights.ca.gov/wp-content/uploads/sites/32/2023/01/Workplace-Discrimination-Poster_ENG.pdf" data-wpel-link="external" target="_blank" rel="noopener noreferrer">Protected categories under California law</a> include: race, religious creed, color, national origin, ancestry, physical disability, mental disability, reproductive health decisionmaking, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or veteran or military status.

Similarly, employers are prohibited from taking an adverse action against an employee because they engaged in a "protected activity," e.g., filed a complaint with a government agency related to their employment, made an internal complaint regarding their working conditions, or requested a reasonable accommodation from the employer. This kind of conduct can be considered unlawful retaliation.

Sometimes, this causes confusion. For example, an employer might decide to fire an employee because they could not get along with customers or were not as productive as the other workers. The employee may claim they were fired because they were pregnant or had a disability. In this situation, the employee might end up filing a lawsuit alleging wrongful termination, even if they had been informed of the employer's legitimate reasons for termination at the time of separation.

As a business owner, claims of wrongful termination can be concerning - especially when you know your company did nothing wrong. Having strong employment policies and procedures in place and ensuring they are enforced consistently can help protect your company from frivolous claims of unlawful wrongful termination. Knowing your <a href="https://www.rediger.law/employment-law/discrimination-harassment-retaliation-and-wrongful-termination/" data-wpel-link="internal">legal options</a> in these situations is wise to help protect and defend your business.]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>On Behalf of Rediger Labor Law</name>
				            </author>
            <title type="html"><![CDATA[What do you do when an employee alleges discrimination?]]></title>
            <link rel="alternate" type="text/html" href="https://www.rediger.law/blog/2023/02/what-do-you-do-when-an-employee-alleges-discrimination/" />
            <id>https://www.rediger.law/?p=47442</id>
            <updated>2023-05-04T21:49:56Z</updated>
            <published>2023-02-16T22:55:28Z</published>
					<taxo:topics><![CDATA[-]]></taxo:topics>
            <summary type="html"><![CDATA[No matter what precautions you take to try and safeguard your company and your employees from discrimination and harassment, allegations can still arise. When an employee complains, you must ensure that the inquiries you make are conducted properly. Despite your best efforts, it can be challenging to understand exactly what should be included in an investigation and how to do…]]></summary>
			                <content type="html" xml:base="https://www.rediger.law/blog/2023/02/what-do-you-do-when-an-employee-alleges-discrimination/"><![CDATA[<span style="font-weight: 400;">No matter what precautions you take to try and safeguard your company and your employees from discrimination and harassment, allegations can still arise.</span>

<span style="font-weight: 400;">When an employee complains, you must ensure that the inquiries you make are conducted properly. Despite your best efforts, it can be challenging to understand exactly what should be included in an investigation and how to do it in a way that will legally protect you. Here are some steps you can take in response to an employee complaint.</span>
<h2>Speak with all parties involved</h2>
<span style="font-weight: 400;">Get as many eyewitness accounts of the specific event in question as you can. Talking to the employee who filed the complaint first can help you learn as much as you can about the specifics of what they say happened. Take notes so you have them to refer to when you hear the accused person's version of the story and that of anyone else who might have witnessed or heard something.</span>
<h2>Get everything on the record</h2>
<span style="font-weight: 400;">This involves keeping track of all the interviews you've conducted during your investigation and recording every step you've done. If the employee claims that the interview was unfairly conducted or that there were other things you could have done, having this information will be crucial.</span>
<h2>Be neutral</h2>
<span style="font-weight: 400;">Employees need to feel confident that they can approach you without worrying about </span><a href="https://www.dol.gov/agencies/whd/retaliation#:~:text=What%20is%20retaliation%3F,for%20engaging%20in%20protected%20activity." data-wpel-link="external" target="_blank" rel="noopener noreferrer"><span style="font-weight: 400;">retaliation or reprisals</span></a><span style="font-weight: 400;">. Keep an open mind and be courteous to everyone engaged. This means holding off on making any decisions or judgments until the investigation is over.</span>

<span style="font-weight: 400;">Handling employee complaints can be difficult and emotive. Seeking some experienced assistance can make the process easier while also making sure </span><a href="https://www.rediger.law/employment-law/discrimination-harassment-retaliation-and-wrongful-termination/" data-wpel-link="internal"><span style="font-weight: 400;">you’re protected legally. </span></a>]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>On Behalf of Rediger Labor Law</name>
				            </author>
            <title type="html"><![CDATA[AB 984 Restricts Employers’ Ability to Use Digital License Plates to Track Employees]]></title>
            <link rel="alternate" type="text/html" href="https://www.rediger.law/blog/2022/11/ab-984-restricts-employers-ability-to-use-digital-license-plates-to-track-employees/" />
            <id>https://www.rediger.law/?p=47407</id>
            <updated>2023-05-04T21:50:20Z</updated>
            <published>2022-11-18T06:39:50Z</published>
					<taxo:topics><![CDATA[-]]></taxo:topics>
            <summary type="html"><![CDATA[On September 29, 2022, Governor Newsom signed Assembly Bill 984 into law. Effective January 1, 2023, employers will be prohibited from using “an alternative device equipped with tracking technology” to locate, track, watch, listen to, or otherwise surveil an employee during work hours unless such is “strictly necessary” for the performance of the employee’s duties and the employer has first…]]></summary>
			                <content type="html" xml:base="https://www.rediger.law/blog/2022/11/ab-984-restricts-employers-ability-to-use-digital-license-plates-to-track-employees/"><![CDATA[On September 29, 2022, Governor Newsom signed <a href="https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB984" data-wpel-link="external" target="_blank" rel="noopener noreferrer">Assembly Bill 984</a> into law. Effective January 1, 2023, employers will be prohibited from using “an alternative device equipped with tracking technology” to locate, track, watch, listen to, or otherwise surveil an employee during work hours unless such is “strictly necessary” for the performance of the employee’s duties and the employer has first notified the employee of specific items related to the monitoring. An employee also has the right to disable monitoring, including vehicle location technology, outside of work hours. AB 984 imposes civil penalties for a violation, authorizes the issuance of citations, prohibits retaliation against an employee, and vests the Labor Commissioner with the authority to remedy alleged violations of the anti-retaliation provisions of the new law.]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>On Behalf of Rediger Labor Law</name>
				            </author>
            <title type="html"><![CDATA[Scope of CFRA expanded to include &#8220;designated person&#8221; effective January 1, 2023]]></title>
            <link rel="alternate" type="text/html" href="https://www.rediger.law/blog/2022/11/cfra-adds-designated-person/" />
            <id>https://www.rediger.law/?p=47413</id>
            <updated>2022-11-10T22:26:20Z</updated>
            <published>2022-11-10T22:13:03Z</published>
					<taxo:topics><![CDATA[-]]></taxo:topics>
            <summary type="html"><![CDATA[Effective January 1, 2023, the California Family Rights Act (“CFRA”) will be expanded to include a “designated person” within the category of persons for whom an employee may take time off to provide care. The term “designated person” is defined in the CFRA to mean “any individual related by blood or whose association with the employee is the equivalent of…]]></summary>
			                <content type="html" xml:base="https://www.rediger.law/blog/2022/11/cfra-adds-designated-person/"><![CDATA[<span style="font-weight: 400;">Effective January 1, 2023, the California Family Rights Act ("CFRA") will be <a href="https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB1041" data-wpel-link="external" target="_blank" rel="noopener noreferrer">expanded to include a "designated person"</a> within the category of persons for whom an employee may take time off to provide care. The term "designated person" is defined in the CFRA to mean "any individual related by blood or whose association with the employee is the equivalent of a family relationship." An employee may identify the "designated person" at the time the employee requests the leave. An employer may limit an employee to one designated person per 12-month period for family care and medical leave.</span>

It is prudent for employers to review their leave policies and procedures and make sure any employees who are responsible for administering employee time off requests are aware of the 2023 CFRA update.]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>by Justin  Rediger</name>
				            </author>
            <title type="html"><![CDATA[California Enacts Workplace Protections for Off-the-Clock Use of Cannabis]]></title>
            <link rel="alternate" type="text/html" href="https://www.rediger.law/blog/2022/10/ab-2188/" />
            <id>https://www.rediger.law/?p=47409</id>
            <updated>2022-10-09T22:28:10Z</updated>
            <published>2022-10-09T22:28:10Z</published>
					<taxo:topics><![CDATA[-]]></taxo:topics>
            <summary type="html"><![CDATA[California Governor Gavin Newsom recently signed Assembly Bill 2188 into law, with an effective date of January 1, 2024, which will prohibit employers from discriminating against employees based upon their use of cannabis off the job and away from the workplace.]]></summary>
			                <content type="html" xml:base="https://www.rediger.law/blog/2022/10/ab-2188/"><![CDATA[California Governor Gavin Newsom recently signed Assembly Bill 2188 into law, with an effective date of January 1, 2024, which will prohibit employers from discriminating against employees based upon their use of cannabis off the job and away from the workplace.

The California legislature has found and declared that tetrahydrocannabinol (THC) is the chemical compound in cannabis that can indicate impairment and cause psychoactive effects. After tetrahydrocannabinol is metabolized, it is stored in the body as a nonpsychoactive cannabis metabolite. These metabolites do not indicate impairment, only that an individual has consumed cannabis in the last few weeks.

The results of most current drug testing for cannabis only show the presence of the nonpsychoactive cannabis metabolite and, therefore, do not indicate impairment on the job.

AB 2188 does not permit an employee to possess, to be impaired by, or to use, cannabis on the job, or affect the rights or obligations of an employer to maintain a drug- and alcohol-free workplace. If an employer reasonably suspects that an employee may be impaired on the job, it may still require a drug test that does not rely on the presence of nonpsychoactive cannabis metabolites, such as one that specifically tests for the presence of THC.

The new law also specifically excludes certain applicants and employees from its provisions, including employees in the building and construction trades and applicants and employees in positions requiring a federal background investigation or clearance. Similarly, the law does not preempt other state or federal laws that require applicants or employees to be tested for controlled substances.

Employers should plan to review and revise their drug testing policies and procedures within the next year to ensure compliance by January 1, 2024.]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>On Behalf of Rediger Labor Law</name>
				            </author>
            <title type="html"><![CDATA[Dealing with a conflict between employees]]></title>
            <link rel="alternate" type="text/html" href="https://www.rediger.law/blog/2022/09/dealing-with-a-conflict-between-employees/" />
            <id>https://www.rediger.law/?p=47389</id>
            <updated>2022-09-21T19:47:24Z</updated>
            <published>2022-09-21T19:47:24Z</published>
					<taxo:topics><![CDATA[-]]></taxo:topics>
            <summary type="html"><![CDATA[Your company has a solid core workforce that generally works well together. However, staff members don’t always stick around, and you may be bringing in new additions all the time. Conflicts among employees are always a possibility, especially if they feel aggrieved or under immense pressure. Occasionally, disputes will even transgress into violent incidents. This is something that you need…]]></summary>
			                <content type="html" xml:base="https://www.rediger.law/blog/2022/09/dealing-with-a-conflict-between-employees/"><![CDATA[Your company has a solid core workforce that generally works well together. However, staff members don’t always stick around, and you may be bringing in new additions all the time.

Conflicts among employees are always a possibility, especially if they feel aggrieved or under immense pressure. Occasionally, disputes will even transgress into violent incidents. This is something that you need to be on the lookout for as an employer.

If something like this occurs in your business, how should you deal with it?
<h2>Policies for reporting</h2>
If the conflict includes allegations of discrimination or harassment, the employee must be able to report such to you. Your company <a href="https://www.rediger.law/blog/2022/08/protecting-against-employment-lawsuits-with-a-handbook/" data-wpel-link="internal">must have established policies</a> and practices for employees to report such conduct.
<h2>An impartial investigation</h2>
Even if you have a good idea of what happened, you still need to conduct a thorough and unbiased investigation. A good investigation will allow you to discover the root cause of the issue and take appropriate disciplinary action if needed.
<h2>Disciplinary measures must be lawful</h2>
Once an investigation has occurred, you may have no option but to take disciplinary action. When doing so, you need to make sure that you use the appropriate legal channels. A safe workplace benefits everyone involved in the company. If you’re unsure about how to deal with a complex employment issue, seeking <a href="https://www.rediger.law/employment-law/discrimination-harassment-retaliation-and-wrongful-termination/" data-wpel-link="internal">legal guidance</a> will help to protect your business.]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>On Behalf of Rediger Labor Law</name>
				            </author>
            <title type="html"><![CDATA[Non-compete provisions in California]]></title>
            <link rel="alternate" type="text/html" href="https://www.rediger.law/blog/2022/09/non-compete-provisions-in-california/" />
            <id>https://www.rediger.law/?p=47393</id>
            <updated>2022-09-13T21:01:18Z</updated>
            <published>2022-09-13T20:58:57Z</published>
					<taxo:topics><![CDATA[-]]></taxo:topics>
            <summary type="html"><![CDATA[Non-compete agreements were largely designed to protect businesses with employees who have unique technical or creative skills and knowledge of the business from taking their knowledge and skills to a direct competitor as soon as they leave. However, often hourly workers in lower-paying industries have been required to sign them. California has banned noncompete agreements except in very limited circumstances.…]]></summary>
			                <content type="html" xml:base="https://www.rediger.law/blog/2022/09/non-compete-provisions-in-california/"><![CDATA[<span style="font-weight: 400;">Non-compete agreements were largely designed to protect businesses with employees who have unique technical or creative skills and knowledge of the business from taking their knowledge and skills to a direct competitor as soon as they leave. However, often hourly workers in lower-paying industries have been required to sign them. California has banned noncompete agreements except in very limited circumstances. </span><span style="font-weight: 400;">President Joe Biden issued an </span><a href="https://www.shrm.org/resourcesandtools/legal-and-compliance/employment-law/pages/what-biden-order-on-noncompetes-means-for-employers.aspx" data-wpel-link="external" target="_blank" rel="noopener noreferrer"><span style="font-weight: 400;">executive order last year encouraging federal limitations</span></a><span style="font-weight: 400;"> be placed on such agreements as well.</span>
<h2>Non-compete agreements are prohibited and unenforceable in California</h2>
<span style="font-weight: 400;">California has largely prohibited non-compete agreements. Nevertheless, employers sometimes use onboarding paperwork that includes over-broad non-compete provisions. </span>Under California's Business and Professions Code, non-compete provisions may be enforceable only if they fall within the scope of the narrow statutory exceptions concerning 1) the sale of a business's goodwill, ownership interest, or assets, 2) the dissolution of a partnership, or 3) the dissolution of a limited liability company.
<h2>Review company policies</h2>
<span style="font-weight: 400;">It's wise for all businesses to review their employment policies and agreements to ensure that they don’t contain prohibited non-compete language. It can also be helpful to make sure your supervisors are knowledgable about the company's policies so employees are not given inaccurate information that leads them to believe they’re being illegally restricted from working for a competing business if they leave. </span>

<span style="font-weight: 400;">Having legal guidance as you </span><a href="https://www.rediger.law/employment-law/" data-wpel-link="internal"><span style="font-weight: 400;">draft, review and update your employment policies</span></a><span style="font-weight: 400;"> can help you avoid costly legal actions.</span>]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>On Behalf of Rediger Labor Law</name>
				            </author>
            <title type="html"><![CDATA[Protecting against employment lawsuits with a handbook]]></title>
            <link rel="alternate" type="text/html" href="https://www.rediger.law/blog/2022/08/protecting-against-employment-lawsuits-with-a-handbook/" />
            <id>https://www.rediger.law/?p=47317</id>
            <updated>2022-08-22T19:38:16Z</updated>
            <published>2022-08-22T19:38:16Z</published>
					<taxo:topics><![CDATA[-]]></taxo:topics>
            <summary type="html"><![CDATA[Harassment and discrimination lawsuits can cost companies several thousand dollars. Even if the company prevails, the lawsuit can damage its reputation and consume resources. Many companies aspire to have a discrimination-free and harassment-free workplace, but companies are at risk of one employee letting their biases dictate their behavior. Your employment handbook can help protect your business from lawsuits. How can…]]></summary>
			                <content type="html" xml:base="https://www.rediger.law/blog/2022/08/protecting-against-employment-lawsuits-with-a-handbook/"><![CDATA[Harassment and discrimination lawsuits can cost companies several thousand dollars. Even if the company prevails, the lawsuit can damage its reputation and consume resources. Many companies aspire to have a discrimination-free and harassment-free workplace, but companies are at risk of one employee letting their biases dictate their behavior.

Your employment handbook can help protect your business from lawsuits. How can you make your handbook effective?
<h2>Outline your policies clearly</h2>
You must comply with federal and state anti-discrimination laws. Not only will you need to avoid making decisions based on people's protected characteristics, but you will also need to provide <a href="https://www.dfeh.ca.gov/shpt/" data-wpel-link="external" target="_blank" rel="noopener noreferrer">training for your employees</a> so that they don't harass each other. Being clear about your internal policies regarding your harassment-free workplace can help protect your company by giving you grounds to discipline workers who mistreat others. Make sure your policies establish clear reporting avenues so that employees can effectively report claims and such can be investigated appropriately.
<h2>Follow your policies</h2>
When your company makes it clear that it does not tolerate harassment or discrimination and gives workers ample opportunity to report such issues, you will be in a better position to defend against lawsuits brought by workers who claim you did not protect them. However, having lawful policies isn’t enough; the policies must be followed.

Learning more about California and federal <a href="https://www.rediger.law/employment-law/" data-wpel-link="internal">employment laws</a> will help your business avoid litigation based on alleged violations. Having sound legal guidance is also important.]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>On Behalf of Rediger Labor Law</name>
				            </author>
            <title type="html"><![CDATA[What if an employee wants to report you?]]></title>
            <link rel="alternate" type="text/html" href="https://www.rediger.law/blog/2022/08/what-if-an-employee-wants-to-report-you/" />
            <id>https://www.rediger.law/?p=47314</id>
            <updated>2023-11-30T08:58:55Z</updated>
            <published>2022-08-09T05:53:13Z</published>
					<taxo:topics><![CDATA[-]]></taxo:topics>
            <summary type="html"><![CDATA[As an employer, it’s your responsibility to provide a healthy and safe work environment where workers feel safe reporting issues they experience or see. While a whistleblower in your business may seem like a negative factor, the fact is, it provides you an opportunity to find issues and improve work conditions for all employees. If a whistleblower reports a safety…]]></summary>
			                <content type="html" xml:base="https://www.rediger.law/blog/2022/08/what-if-an-employee-wants-to-report-you/"><![CDATA[As an employer, it’s your responsibility to provide a healthy and safe work environment where workers feel safe reporting issues they experience or see.

While a whistleblower in your business may seem like a negative factor, the fact is, it provides you an opportunity to find issues and improve work conditions for all employees.

If a whistleblower reports a safety concern, injury or another protected activity, you need to understand the <a href="https://www.employer.gov/EmploymentIssues/Safety-and-health/Whistleblower-protection/" data-wpel-link="external" target="_blank" rel="noopener noreferrer">law and what protections are in place for them</a>. Violating the law can result in serious consequences.
<h2>Avoid violating the law with whistleblowers</h2>
It’s illegal to take any adverse action or to retaliate against a whistleblower in any way. This includes denying benefits to them, firing, making threats and other similar actions.

It’s also important to know your employees’ rights in these situations. They can:
<ul>
 	<li>File an official complaint with OSHA</li>
 	<li>Report any work-related injury</li>
 	<li>Request an OSHA inspection</li>
 	<li>Bring up a health or safety complaint</li>
 	<li>Access injury and exposure records</li>
</ul>
<h2>Your responsibility as an employer</h2>
As an employer, it’s up to you to create an environment where employees feel confident that their rights will be protected. It’s also worth remembering that the law entitles employees to blow the whistle and offers them protection when they do. Retaliating against them in any way can result in serious consequences.
<h2>Protecting your business</h2>
Knowing the laws and <a href="https://www.rediger.law/employment-law/discrimination-harassment-retaliation-and-wrongful-termination/" data-wpel-link="internal">rights related to whistleblowers</a> will help you avoid taking any adverse action against them. It will also ensure that employees feel confident in reporting issues, which will provide you with the opportunity to correct the problem or hazard.]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>by Candice  Hanratty</name>
				            </author>
            <title type="html"><![CDATA[U.S. Supreme Court: Individual PAGA claims can be arbitrated]]></title>
            <link rel="alternate" type="text/html" href="https://www.rediger.law/blog/2022/07/individual-paga-claims-can-be-arbitrated/" />
            <id>https://www.rediger.law/?p=47298</id>
            <updated>2022-07-28T19:48:19Z</updated>
            <published>2022-07-15T18:43:57Z</published>
					<taxo:topics><![CDATA[-]]></taxo:topics>
            <summary type="html"><![CDATA[The U.S. Supreme Court recently issued a favorable decision for California employers in Viking River Cruises, Inc. v. Moriana on the issue of whether employers may enforce valid arbitration agreements with employees for claims brought under California’s Private Attorneys General Act (“PAGA”). Learn more about PAGA here, here and here. The Court held that PAGA claims can be divided into…]]></summary>
			                <content type="html" xml:base="https://www.rediger.law/blog/2022/07/individual-paga-claims-can-be-arbitrated/"><![CDATA[The U.S. Supreme Court recently issued a favorable decision for California employers in <em>Viking River Cruises, Inc. v. Moriana </em>on the issue of whether employers may enforce valid arbitration agreements with employees for claims brought under California's Private Attorneys General Act ("PAGA"). Learn more about PAGA <a href="https://www.rediger.law/paga-and-class-action-defense/" data-wpel-link="internal">here</a>, <a href="https://www.rediger.law/blog/2022/04/us-supreme-court-will-rule-soon-on-california-paga-law/" data-wpel-link="internal">here</a> and <a href="https://www.rediger.law/?s=PAGA" data-wpel-link="internal">here</a>.

The Court held that PAGA claims can be divided into individual claims being pursued by the named plaintiff, and representative claims brought on behalf of all other allegedly aggrieved employees. As such, a plaintiff signed to a well-written arbitration agreement can be required to arbitrate their PAGA claims on an individual basis. Once that happens, the remainder of any PAGA claim filed in court (<em>i.e</em>., the claims brought on behalf of other employees that are not allowed to be compelled to arbitration) must be dismissed because the named plaintiff no longer has "standing" to pursue the claim in court.
<h2><strong>Is the decision too good to be true for employers? Maybe.</strong></h2>
While many employers may be rushing to implement arbitration agreements in an attempt to reduce exposure to PAGA lawsuits, the benefits of the decision might be short-lived. The Court's decision was based on the definitions that currently appear in the PAGA statute. Justice Sotomayor's concurrence expressly acknowledged that the California legislature could simply amend the PAGA statute to allow employees to retain standing to proceed in court on behalf of other employees despite having their individual claims committed to arbitration.
<h2><strong>Employers must also consider evolving California law regarding mandatory arbitration agreements.</strong></h2>
Labor Code section 432.6 (aka AB 51) is currently in effect even though its legality is still being litigated in the Ninth Circuit. (See <em>Chamber of Commerce of the U.S. v. Bonta</em>). The law prohibits employers from requiring employees to sign arbitration agreements that cover claims under the Fair Employment and Housing Act or the Labor Code (<em>i.e</em>., PAGA claims) as a condition of employment. Under certain circumstances, criminal or civil penalties can be imposed for violating the law. Thus, as long as the is law is still in effect, arbitration agreements purporting to cover PAGA claims would need to be made entirely voluntary.

Before deciding to implement an arbitration agreement with employees, companies should also consider the scope of claims covered by the agreement, the cost associated with arbitration proceedings, and will want to make sure the agreement is drafted to best navigate current federal and California state law. A company should carefully weigh the potential benefits and risks associated with having an arbitration agreement in place before rolling one out to employees.]]></content>
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