NFIB Argues for Broad Arbitration Application at California Supreme Court

December 9, 2022

NFIB Argues for Broad Arbitration Application at California Supreme Court

SACRAMENTO, Ca. (Dec. 9, 2022) – NFIB filed an amicus brief in the case Erick Adolph v. Uber Technologies, Inc. at the California Supreme Court. The case centers on the application of the California Labor Code Private Attorneys General Act (PAGA) standing for representative claims and the use of arbitration. “California has consistently been rated one of the worst states in the country for businesses,” said John Kabateck, NFIB California State Director. “Litigation abuse, particularly related to the state’s labor code, is one of the main reasons businesses choose to leave California. This case is an opportunity for the Court to aid both small businesses and employees by welcoming alternatives to litigation in settling disputes.” “Small businesses need a business-friendly environment in order to thrive,” said Beth Milito, Executive Director of NFIB’s Small Business Legal Center. “For many owners, the cost of litigation can be catastrophic to their small business. NFIB urges the Court to consider how alternative dispute resolution proceedings could be advantageous not only for California’s small businesses, but for employees, the court system, and the entire state.” The brief argues two main points. First, the court of appeals’ decision conflicts with the U.S. Supreme Court’s decision in Viking River Cruises, which held that PAGA claims can be divided into individual and representative claims. Because determining whether a PAGA-plaintiff is an “aggrieved employee” is an individualized analysis, individual claims are subject to arbitration, and PAGA-plaintiffs do not maintain standing in court for representative claims. Second, our brief highlights studies and reports demonstrating that alternative dispute resolution proceedings, like arbitration, are better for employees, employers, and the court system and California should allow for broad arbitration of PAGA claims. The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.

Topics:

Legal

State:

California

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Learn More