On June 15, 2022, the US Supreme Court issued its ruling in Viking River Cruises, Inc. v. Moriana. The high court held that the Federal Arbitration Act (FAA) preempts California law preventing an employer to execute an arbitration agreement with an employee where only individual claims are subject to arbitration and not Private Attorney General Act (PAGA) claims. This means that California employers will have the ability to limit their exposure to individual claims through the use of a properly drafted arbitration agreement and preclude class claims under PAGA. More to come!
