In Lawson v. ZB, NA, the Court of Appeal issued a writ directing the trial court to vacate its order bifurcating the underpaid wages portion of Plaintiff’s claim brought under the Private Attorney Generals Act (PAGA) and compelling Plaintiff to arbitrate that portion of the claim. The Court noted that Section 558 of the Labor Code expressly provides for civil penalties; therefore, claims brought under Section 558, including claims for underpaid wages, are cognizable under the PAGA. Furthermore, the Court held that claims brought under Section 558 are indivisible claims for civil penalties; therefore, Plaintiff’s PAGA claim was erroneously bifurcated.

The Court also pointed out that although orders to compel arbitration are not appealable, writs of review may be issued in limited circumstances, including “if the matters ordered arbitrated fall clearly outside the scope of the arbitration agreement.” Citing prior case law, the Court noted that PAGA claims are outside the scope of arbitration agreements because they are brought on behalf of the state, who cannot be bound by an employee’s agreement to arbitrate or waiver of the right to bring representative claims.

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