The trial court granted the motion, but it also compelled to arbitration “as a representative action” the unpaid wages of all allegedly aggrieved employees. and Zions Bancorporation (“ZB”), moved to compel arbitration of Lawson’s Section 558 claim for unpaid wages and to stay the civil action.
#California cause of actio for misclassification code#
Labor Code Section 558 provides for $50.00 and $100.00 “for each underpaid employee for each pay period for which the employee was underpaid in addition to an amount sufficient to recover underpaid wages.” Labor Code § 558(a) (emphasis added). However, Lawson’s complaint sought “civil penalties, including unpaid wages and premium wages per California Labor Code section 558.” Lewis, which rejected challenges to class action waivers in employment arbitration agreements, Lawson’s complaint contained a single cause of action under California’s Private Attorneys General Act (PAGA) for alleged Labor Code violations, claims that arguably would not be subject to arbitration under California law. Following a recent trend in employment litigation since the U.S. The plaintiff, Kalethia Lawson, sued her former employer alleging failure to pay overtime and minimum wages, failure to provide meal and rest periods, failure to timely pay wages, failure to provide accurate wage statements, and failure to reimburse business expenses. This is surprising, as the Court provided this much-needed guidance on its own in a case where the question originally presented was whether claims for unpaid wages under Section 558 could be compelled to arbitration. Putting an end to employees’ backdoor attempts to recover unpaid wages in Private Attorneys General Act-only actions under California Labor Code Section 558, the California Supreme Court has ruled against allowing such claims.
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