Gregory W. Knopp

Knopp operates at the frontier of Private Attorney General Act law, a relatively new form of representative action enacted in 2004 that has some similarities to class actions — and some major differences that remain unsettled. "Until the last couple of years, PAGA didn't get much attention," Knopp said. Then the state Supreme Court decided Iskanian v. CLS Transportation, barring enforcement in California of employment arbitration agreements for PAGA claims. The 9th U.S. Circuit Court of Appeals gave that ruling its blessing in 2015.

Because PAGA shields a form of mass tort from arbitration clauses, much litigation ensued. Knopp represents client Starbucks Corp. in two PAGA actions by its California workers seeking to civil penalties for various alleged improper pay practices. In O'Bosky v. Starbucks Corp., 37-15-00014973 (San Diego Super. Ct., filed May 4, 2015), the plaintiffs allege that Starbucks improperly rounds employees' recorded work time and miscalculates overtime rates by not accounting for the value of free beverages employees receive on the job. Knopp's successful demurrer resulted in dismissal of the overtime rate claim.

Set for trial in September is Carrington v. Starbucks Corp., 37-14-00018637 (San Diego Super. Ct., filed June 10, 2014). The complaint alleges that Starbucks has a policy of failing to provide premium pay on certain shifts during which meal breaks are not provided. "This case is significant because we are litigating the issue of the proper scope of discovery in PAGA actions and what it means to be a representative plaintiff and how courts should manage PAGA cases," Knopp said.

"Plaintiffs like PAGA to avoid some class action rules," he added. "The [state] Supreme Court ruled that not all class action rules apply, which is favorable to employees. But the courts haven't clarified how exactly such cases should proceed. As defense lawyers, we are arguing that some due process considerations ought to apply. Essentially, we're trying to apply the Class Action Fairness Act to PAGA."

He said the fairness act is important because it levels the field. "Class action rules are about insuring trial manageability and protecting the defense's due process right to present its evidence."

The issues are engaging and enjoyable, Knopp said. "It's always fun to confront new and unsettled issues. You get to bring your experience to bear to help shape the law."

— John Roemer