Court of Appeal holds individual PAGA claims must be pleaded to be arbitrable: Rodriguez v. Packers Sanitation Services

In Rodriguez v. Packers Sanitation Services (2025) 109 Cal.App.5th 69, the Court of Appeal (Fourth Appellate District, Division One) held that courts must examine the complaint itself to determine if it includes arbitrable individual PAGA claims.

Plaintiff sued under PAGA “in a Representative Capacity only” (emphasis in original) for various wage and hour violations. Defendant moved to compel arbitration and subsequently moved to dismiss or stay the case pending Viking River Cruises, Inc. v. Moriana (2022) 596 U.S. 639. Following the decision in Viking River, Defendant argued that Plaintiff’s “individual PAGA claim” should be compelled to arbitration and his non-individual PAGA claim dismissed. The trial court denied the motion, finding that Iskanian v. CLS Transportation Los Angeles, LLC (2014) 59 Cal.4th 348 was “current law” when the agreement was signed. Defendant appealed.

The Court of Appeal affirmed denial of the motion to compel arbitration, finding that because  Plaintiff did not assert individual PAGA claims in the complaint, there was nothing to compel to arbitration. The court disapproved Leeper v. Shipt, Inc. (2024) 107 Cal.App.5th 1001, which required arbitration of unasserted individual PAGA claims. Instead, the court emphasized the complaint’s contents as the determinative factor. Notably, the court declined to address Defendant’s argument regarding Balderas v. Fresh Start Harvesting, Inc. (2024) 101 Cal.App.5th 533 and its potential conflict with Labor Code § 2699(a). However, it left open the possibility that the complaint, lacking an individual component, might not comply with § 2699(a), and that Defendant could raise this issue through an appropriate pleading challenge.

Full opinion

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