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Ninth Circuit Holds that Waivers of PAGA Claims Cannot be Enforced

This week, a federal appeals court dealt another blow to California employers. 

In Shukri Sakkab v. Luxottica Retail North America, Inc., a divided U.S. Court of Appeals for the Ninth Circuit ruled that the Federal Arbitration Act (FAA) does not preempt a California court-created rule that an employee's right to bring representative wage and hour claims under California’s “Private Attorneys General Act” (PAGA) cannot be waived by a private arbitration agreement. In PAGA claims, the employee acts as the “state's representative” to seek redress for alleged California Labor Code violations. PAGA claims and traditional “wage and hour” class action claims are very similar in nature – only the remedy is different. In PAGA claims, the state of California is entitled to 75% of the recovery, and the employees receive the remaining 25%. In class actions, the employees receive 100% of the recovery. (Read More)

Todd Stitt Discusses How to Reduce E&O Exposure at the 2014 American Agents Alliance Convention & Expo

As part of the presentation, “From the Legal Experts: A Panel Discussion with Michelman & Robinson, LLP” on September 27, 2014 at the 2014 American Agents Alliance Convention & Expo, Todd Stitt discussed how broker-agents can reduce E&O exposure. He also provided steps to mitigate the likelihood of being sued by a customer. In this segment, he explains why it’s important to identify oneself clearly as either a broker or an agent.