Top Defense Results: Andrade et. al. v. P.F. Chang's Chinese Bistro Inc.

Enforcing arbitration agreements is a hot-button issue in California, and though Supreme Court decisions have offered some guidance, courts are still working out the details.

The arbitration agreement in the employees' contracts at P.F. Chang's China Bistro was thoroughly scrutinized in this wage and hour class action that alleged the company did not provide complete and detailed wage statements.

P.F. Chang's agreement requires individuals litigate their claims separately, including actions brought under the California Private Attorneys General Act, or PAGA, in which private citizens bring claims over Labor Code violations.

Plaintiffs challenged whether the waiver of PAGA claims in the arbitration agreement was legal, but U.S. District Judge Janis L. Sammartino found it valid and enforceable, requiring the employees to arbitrate those claims individually as well. Andrade et al. v. P.F. Chang's China Bistro Inc. et al., 12-2724 (S.D. Cal., filed Nov. 7, 2012).

Rebecca Eisen, a partner at Morgan, Lewis & Bockius LLP who was lead lawyer representing P.F. Chang's, said it helped clarify California employment law.

"It has been very helpful to the employer community to have an understanding of what is and what is not OK in arbitration agreements," Eisen said. "All the other employers trying to figure out if an arbitration agreement is fair have this case now available to them to help guide their decisions."

Eisen said the case was similar to another involving P.F. Chang's arbitration agreement in front of U.S. District Judge Yvonne Gonzalez Rogers in the Northern District the previous year, which addressed some of the same issues.

Plaintiffs' attorney Jeffrey Hogue said his clients are in the process of arbitrating their claims individually. After the court confirms any awards, he plans to appeal the judge's decision.

- HADLEY ROBINSON

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