If you’re a business owner in Los Angeles, chances are you’ve heard of PAGA—the Private Attorneys General Act. It’s one of the most powerful tools California employees use to sue employers for alleged labor violations. PAGA lawsuits are costly, complex, and often involve penalties on behalf of large groups of employees.  So here’s the key question: Can you compel PAGA claims to arbitration in California?

Let’s break down what PAGA arbitration means for employers, the latest legal developments, and how businesses in Los Angeles can protect themselves from devastating lawsuits.

What Is a PAGA Claim?

The Private Attorneys General Act (PAGA) gives employees the right to file lawsuits on behalf of the state of California for labor code violations. These lawsuits seek civil penalties for violations such as:

• Missed meal and rest breaks
• Inaccurate wage statements
• Late or unpaid wages
• Misclassified employees

One of the biggest risks for employers is that a single employee can bring a representative PAGA claim on behalf of all “aggrieved” employees—without needing to meet class action requirements. That means one unhappy worker can expose your entire company to liability, even if others aren’t involved.

For Los Angeles employers, where businesses often have large and diverse workforces, PAGA claims present a serious financial risk.

Can PAGA Claims Be Arbitrated?

This is where things have evolved—and fast. In the past, California courts generally ruled that PAGA claims couldn’t be forced into arbitration. But a recent California Supreme Court case changed that.

In the 2023 ruling of Adolph v. Uber Technologies Inc., the court clarified:

• If an employee signed a valid arbitration agreement, their individual PAGA claim can be compelled to arbitration.
• However, the non-individual (representative) PAGA claim may still proceed in court.

This means employers can split the case—pushing the individual claim into arbitration while the representative claim continues in court. While not a complete defense, this strategy offers significant benefits.

Why PAGA Arbitration Still Matters for Employers

Even though the entire PAGA claim can’t be forced into arbitration, compelling the individual part of the case can still create valuable leverage.

Here’s how arbitration helps employers:

• Narrows the scope of litigation
• Delays the court portion of the case
• Reduces potential discovery and legal costs
• Gives your legal team more control over strategy
• May lead to early settlements

At Rupal Law, we use arbitration strategically to reduce exposure and weaken the impact of a PAGA claim.

Are Your Arbitration Agreements Outdated?

Many California employers are still using pre-2023 arbitration agreements that don’t reflect the latest law. If your business hasn’t updated its agreements since the Adolph decision, you may be missing a major opportunity to protect yourself.

To hold up in court, your arbitration agreements should:

• Clearly require arbitration of individual PAGA claims
• Be compliant with California contract law
• Include a severability clause
• Be offered in the employee’s primary language
• Avoid overly broad or one-sided language that courts may strike down

Rupal Law can review, update, or draft arbitration agreements that are designed to be enforceable and effective under current California law.

What Los Angeles Employers Should Do Now

Being proactive is the best defense against a PAGA claim. Here’s what we recommend:

1. Update Your Arbitration Agreements
   Make sure your agreements reflect the Adolph ruling and are enforceable in California courts.
2. Conduct a Wage and Hour Audit
   Most PAGA lawsuits arise from small, technical violations. Regular audits can identify risks before they become lawsuits.
3. Train Your Managers and Supervisors
   Frontline managers often unknowingly trigger PAGA violations. Proper training is key to compliance.
4. Consult a Los Angeles PAGA Defense Lawyer
   Working with a law firm that focuses on PAGA defense can make all the difference. At Rupal Law, we help employers navigate arbitration, respond to claims, and reduce liability.

Why Choose Rupal Law for PAGA Defense?

Rupal Law is a trusted PAGA defense firm serving Los Angeles and businesses across California. We represent employers in industries such as hospitality, healthcare, retail, logistics, and professional services.

We understand how devastating a PAGA claim can be. That’s why we take a proactive, aggressive approach to protect your business from risk. Whether you need updated agreements, litigation defense, or compliance support, our team is ready to help.

Call Rupal Law Today at (951) 460-0830

Don’t wait until a lawsuit lands on your desk. If you’re a California employer, now is the time to review your arbitration agreements and prepare a strategy for potential PAGA claims.

Call Rupal Law at (951) 460-0830 to schedule a consultation with an experienced Los Angeles PAGA defense lawyer. We’re here to defend your business, protect your interests, and guide you through every step of the legal process.

Let us help you take control—before a PAGA claim takes control of your business.