This Law Firm Publication by Epstein Becker & Green, P.C. discusses Montano v. The Wet Seal Retail, Inc., in which the California Court of Appeal affirmed the trial court's decision denying an employer's motion to compel arbitration. In Montano, the court found impermissible an arbitration agreement's clause waiving actions under California's Private Attorney General Act (PAGA). The court also found that if it contains a non-severability clause, an arbitration agreement with a clause waiving PAGA claims can be entirely invalidated. This decision continues a divide between state and federal courts on the issue. While several federal courts have found PAGA claim waivers enforceable, the California Supreme Court has previously found PAGA waivers in an arbitration agreement invalid (including in the California Supreme Court's 2014 decision in Iskanian v. CLS Transp. Los Angeles, LLC).