New class/PAGA arbitration opinion: Perez v. U-Haul Co.

In Perez v. U-Haul Co., ___ Cal.App.5th ___ (Sept. 16, 2016), the Court of Appeal (Second Appellate District, Division Seven) applied Iskanian in holding that the defendant's arbitration clause, which barred class and representative actions, was unenforceable as to plaintiffs' PAGA claims. 

Specifically, the court held that the plaintiffs could not be compelled to arbitrate the threshold question of whether they are "aggrieved employees" with standing to sue under PAGA.  Slip op. at 10-11.  Nor can they be compelled to "split" their PAGA claim into "individual" and "representative aspects" and to arbitrate the former, because Iskanian holds that all PAGA actions are deemed "representative" actions.  Id. at 11-14.