Unions Denied Standing to Sue for Members’ Labor Code Violations

July 12, 2009 by Beeson Tayer & Bodine

The California Supreme Court has issued two decisions that clarify the procedures for bringing complaints against employers charged with Labor Code violations.

In ATU Local 1756 v. Superior Court (First Transit, Inc.) (2009) 46 Cal.4th 993, the Court held that a labor union has no standing to pursue claims on behalf of injured members under California’s Unfair Competition Law (“UCL”) or Labor Code Private Attorneys General Act (“PAGA”). And in a companion case, Arias v. Super. Ct. of San Joaquin County (2009) 46 Cal.4th 969, the Court held an employee may proceed with claims alleging lack of overtime and meal and rest periods for himself and his dairy co-workers under PAGA without complying with the requirements for a class action.

Proposition 64 amended the UCL in 2004 to require that a plaintiff bringing a representative claim has suffered an injury in fact. PAGA, also enacted in 2004, provides that an “aggrieved employee” may bring a civil action against his employer to recover civil penalties for Labor Code violations. The Court in First Transit concluded that only a union member himself can bring a claim under both the UCL and PAGA , and that he cannot assign these claims to his union.

In Arias the Court addressed the issue of whether employees bringing representative actions under PAGA are subject to class action requirements (e.g., plaintiff must establish there is a welldefined community of interest among the class members, class members may opt out, and class action settled only with court approval). PAGA permits a representative action “notwithstanding any other provision of law.” The Court applied this language to conclude the plaintiff proceed under PAGA without satisfying class action requirements, but no so under the UCL.

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