Esparza v. KS Industries, LP

For purposes of the Iskanian rule, the Private Attorneys General Act of 2004 (PAGA) representative claims for civil penalties are limited to those where a portion of the recovery is allocated to the Labor and Workforce Development Agency. Claims for unpaid wages based on Labor Code section 558 are not allocated in this manner and, therefore, the Iskanian rule does not exempt such claims from arbitration. Applying the interpretation of the Iskanian rule and its term of art, civil penalties, to this litigation, the court concluded that some of the claims the employee was pursuing were PAGA representative claims that seek civil penalties. Under the Iskanian rule, those claims were not subject to arbitration. Therefore, the Court of Appeal affirmed the trial court's order insofar as it denied arbitration of the representative claims for civil penalties and remanded for further proceedings. View "Esparza v. KS Industries, LP" on Justia Law