Olabi v. Neutron Holdings, Inc., No. A156990 (D1d5 Jun. 19, 2020).
Plaintiff sued erstwhile employer for PAGA and under the UCL. Both claims are based on misclassification as an independent contractor. Plaintiff’s employment contract has an arbitration clause, but it carves out PAGA claims, which aren’t arbitrable anyway. Defendant moved to compel the UCL claim to arbitration, but Plaintiff dismissed the claim before the hearing. The trial court denied the motion to compel.
Defendant tries to argue that, even if the PAGA claim isn’t arbitrable, it’s entitled to arbitrate the gateway misclassification issue that underlies it. That really doesn’t make any sense. But the Court decides it doesn’t need to reach the issue because the arb clause clearly carved out PAGA claims—whole PAGA claims—to which proof of the misclassification was an essential part.
Affirmed.
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