Gonzales v. Emeritus Corporation

INTRODUCTION

19 In this PAGA and wage-and-hour putative class action, defendants move to compel 20 21 arbitration. For the reasons stated below, the motion to compel arbitration is GRANTED IN PART 22

AND DENIED IN PART.

STATEMENT

23 In September 2019, the California Supreme Court held that the “amount sufficient to 24 recover the underpaid wages” under California Labor Code Section 558(a) could not be brought 25 as part of a PAGA claim. ZB, N.A. v. Superior Court of San Diego Cty., 8 Cal. 5th 175 (2019). 26 In brief, under California’s Private Attorneys General Act of 2004, an aggrieved 27 employee may seek civil penalties for Labor Code violations committed against her and other 28 1 her employer. If the aggrieved employee prevails, the California Labor and Workforce 2 Development Agency collects 75 percent of the penalties, and the aggrieved employees receive 3 the remainder. Cal. Labor Code § 2699(i) (2016). 4 Section 558(a) is one of many provisions in the Labor Code which imposes “civil 5 penalties” on employers. See, e.g., id. §§ 225.5, 226.8(b), 1174.5. Specifically, Section 558(a) 6 provides as follows (emphasis added): 7 (a) Any employer .…