Seyfarth Synopsis: The Fourth District held that a motion to compel arbitration is not the correct vehicle to challenge a plaintiff's failure to plead the individual component of a PAGA claim affirming the Superior Court's denial of a motion to compel arbitration as there was no individual component alleged to compel to arbitration.
The Fourth District reviewed a Superior Court decision denying a motion to compel arbitration in the aftermath of Balderas v. Fresh Start Harvesting, Inc. where the plaintiff contended that he did not allege the individual component of a PAGA claim such that there was no claim that could be to compelled to arbitration. Rather, the plaintiff alleged that he was acting "in a representative capacity only." The Fourth District concluded that the plaintiff only alleged he was an aggrieved employee "in order to meet the standing the requirements" for the non-individual component of a PAGA claim and, for this reason, held that the Superior Court was correct in denying the employer's motion to compel arbitration because there was no individual component to arbitrate. The Fourth District made clear that that its decision was particular to the complaint at issue and that any courts facing the same issue must examine the complaint before it.
The Fourt District expressly did not address the question of whether it is permissible for a plaintiff to file a complaint that asserts only the non-individual component of a PAGA claim. It noted that Leeper v. Shipt, Inc. stands for the proposition that "a PAGA complaint should contain an individual PAGA claim, not that it does" and any such dispute would have to be resolved on a pleadings challenge and not as part of a motion to compel arbitration. Moreover, the Court of Appeal made clear that the plaintiff would be precluded from taking the position that he does seek to bring the individual component of a PAGA claim, all but inviting the defendant to bring a pleadings challenge on remand.
Originally published 28 February 2025
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