As of the end of March, the Supreme Court heard arguments in the case Viking River Cruises, Inc. vs. Moriana. The Court’s decision could permanently alter the rights of both employers and workers during disputes. Here’s what you need to know about the Viking River Cruises, Inc. vs. Moriana case and how it could affect you.
California Employment Law Background
Beyond a few overarching federal mandates, every state is free to write and enforce its own labor laws. This allows states like California to organize the relationship between employers and workers according to their residents’ preferences.
However, individual states are still accountable to the federal government. If a state’s laws violate federal rules, residents may file lawsuits regarding the laws’ authority. That’s what’s happened in the case of a California labor law that permits private attorneys to file class action lawsuits on behalf of workers that are trapped by arbitration clauses. This law is known as the Private Attorneys General Act of 2004, and it’s played an essential role in helping California enforce labor laws.
California’s Private Attorneys General Act of 2004
The Private Attorneys General Act, or PAGA, is a unique law that California legislators implemented to help enforce the state’s Labor Code. According to state officials, California at the time did not have the resources to adequately police labor law violations in particularly dangerous industries like food, agriculture, manufacturing, and construction.
That’s where PAGA came in. The Act allows “private attorneys general” to bring class action lawsuits on behalf of workers facing illegal or unfair working conditions. This means that an employee with a labor law grievance against their employer can become “deputized” as a private attorney general to pursue civil damages.
All it takes to accomplish this is for the employee to notify the State of California Labor and Workforce Development Agency (LWDA) and wait 90 days. If the LWDA doesn’t respond to the claims, the worker officially gains the status of a private attorney general for their grievance and is considered a state agent. This permits them to seek civil damages for both themselves and other employees of the company, both current and former.
This law allows workers to sidestep specific arbitration clauses in their employment contracts. Many employers insert arbitration clauses that specifically prevent employees from filing class action lawsuits against them. However, through PAGA, employees can circumvent these arbitration clauses and file civil class actions regardless. This law has been an invaluable tool for state workers to fight against unfair working conditions for nearly 18 years.
Why the Supreme Court Heard Viking River Cruises, Inc. vs. Moriana
Obviously, many employers found the Private Attorneys General Act extremely inconvenient. These companies attempted to use arbitration clauses to avoid having their employees hold them accountable en masse, and PAGA gave workers a loophole. As such, multiple lawsuits have been filed over the years to attempt to strike down the Act.
The most recent attempt is found in Viking River Cruises. In this case, Angie Moriana, an employee of Viking River Cruises, quit her job, then claimed that Viking River never issued her last paycheck. She filed a lawsuit under PAGA that claimed similar wage theft violations on behalf of many other Viking River Cruises employees.
However, Viking attempted to block the lawsuit based on its arbitration clause that bans class action lawsuits. Both the initial Los Angeles County Superior Court judge and the state court of appeals refused this request. According to their rulings, in a PAGA claim, the state is the “real” party bringing the lawsuit, and the employee is simply acting in its stead.
However, Viking successfully appealed to have the case heard by the federal Supreme Court. This places PAGA on the national stage. It appears that the decision could go either way.
On the one hand, Congress has recently given workers significantly more freedom regarding arbitration clauses with new legislation that renders arbitration agreements for sexual harassment null and void. On the other, the Supreme Court has regularly ruled in favor of business over workers for the past decade. Whether the Court follows its own patterns or chooses to follow the national zeitgeist is yet to be seen. The final decision will likely be announced in June of this year.
Impact on Workers in California and Nationwide
The Court’s decision in Viking River Cruises, Inc. vs. Moriana could have impacts beyond the California workforce. There are two likely outcomes, depending on which way the justices go.
The first is that the Act is deemed unenforceable, and workers in California will lose this valuable right. Should that occur, workers will need to rely on other methods of holding their employers accountable for violating labor laws, such as standard lawsuits. It will also make the development of similar laws in other states less likely and reduce employee opportunities to fight poor working conditions.
The other possibility is that PAGA is upheld, and California citizens will continue to have the right to file class actions on behalf of the state. In this case, it’s conceivable that laws like PAGA appear in other states, too, granting more workers the opportunity to hold employers accountable. If the Supreme Court denies Viking’s claim, it will be a significant victory for workers’ rights nationwide.
Keep Holding Employers Accountable for Their Actions
There’s no doubt that Viking River Cruises, Inc. vs. Moriana is a landmark case in employment law. California’s Private Attorneys General Act could either see federal approval or be rendered unenforceable depending on the Supreme Court’s final decision. Either way, workers in California and around the country should expect the Court’s decision to significantly impact how local Labor Codes are enforced.
Regardless of the Court’s final decision, workers like you have options. Even if PAGA isn’t upheld, you can still fight to end wage theft and receive better working conditions. The first step is to get in touch with an experienced employment law attorney. They can help you organize your case and hold your employer accountable for any Labor Code violations they’ve forced you to suffer.
