Can California Workers Bring a “Headless” PAGA Claim to Avoid Arbitration?

In Leeper v. Shipt, a California worker filed a PAGA lawsuit seeking penalties on behalf of himself and other employees (while disclaiming any individual PAGA claim in an attempt to avoid arbitration). However, the Court of Appeal didn’t accept the argument, and as of March 2026, the California Supreme Court is still reviewing the question presented in Leeper v. Shipt, Inc.

Case: Leeper v. Shipt

Court: Los Angeles County Superior Court

Case No. 24STCV06485

Do You Know the Plaintiff in the Case?

​The plaintiff is Christina Leeper. According to the published Court of Appeal opinion, she entered into an independent contractor agreement with Shipt on March 19, 2019, to provide services as a Shipt shopper. Leeper filed an employment law complaint alleging Shipt misclassified her and other workers as independent contractors and thereby violated multiple provisions of the California Labor Code. She filed the Los Angeles County Superior Court action on March 14, 2024, styling it as a representative PAGA complaint seeking non-individual penalties and related relief.

​Do You Know the Defendant in the Case?

Shipt, Inc. and its parent company, Target Corporation, are listed as the defendants in the case. The Court of Appeal opinion describes Shipt as an online ordering platform whose members arrange for Shipt shoppers to purchase and deliver goods from local merchants. The opinion also states that Leeper’s agreement included an arbitration clause requiring disputes to be resolved through binding arbitration, and that the agreement applied to Shipt and certain related entities, including parents. At this stage of the broader Supreme Court review, the dispute is less about the underlying worker-classification allegations and more about how PAGA claims interact with arbitration agreements under California law.

The Plaintiff’s Allegations: Leeper v. Shipt

Leeper’s complaint alleged Shipt misclassified her and similarly situated workers as independent contractors in violation of the Labor Code. The procedural dispute that made this case significant, however, is narrower: she pleaded only a single count for non-individual PAGA penalties and expressly alleged that she was bringing the case on a representative, non-individual basis. Shipt moved to compel arbitration of the individual portion of the PAGA action, while Leeper argued there was no individual claim to arbitrate because none had been pleaded. The trial court agreed with Leeper, but the Court of Appeal reversed and held that every PAGA action necessarily includes an individual PAGA claim.

Learn More About PAGA: PAGA is short for the Private Attorneys General Act. In simple terms, it allows an aggrieved employee to step into the shoes of the state and seek civil penalties for Labor Code violations affecting themselves and other employees.

What Is a Headless PAGA Claim? A “headless” PAGA claim is shorthand for a lawsuit that tries to pursue only non-individual or representative PAGA penalties for other workers, while disclaiming the plaintiff’s own individual PAGA claim. That is the core issue now under review in Leeper.

What Is the Main Question in the Case?

The main question in Leeper v. Shipt is whether every PAGA case automatically includes both an individual component and a representative component, even if the complaint tries to plead only representative relief. The Court of Appeal answered yes, relying on Labor Code section 2699’s language authorizing an aggrieved employee to sue “on behalf of the employee and other current or former employees.” Because of that reading, the appellate court held Leeper’s individual PAGA claim had to be sent to arbitration and the representative portion stayed. The California Supreme Court is now reviewing whether California law permits a plaintiff to bring only a non-individual PAGA action and thereby avoid arbitration of an individual claim.

FAQ: Leeper v. Shipt

Q: What Is the Procedural Question Asked by Leeper v. Shipt?

A: Leeper v. Shipt is a California PAGA and arbitration case about whether a worker can file a representative-only, or “headless,” PAGA lawsuit without including an individual PAGA claim.

Q: What Is the Purpose of a PAGA Claim?

A: The PAGA claim’s primary purpose is to ensure, enforce, and deter unlawful business and labor practices in California, with civil penalties often distributed between the state and employees.​

Q: Why Did the Court of Appeal Reverse the Trial Court’s Decision in Leeper v. Shipt?

A: The Court of Appeal reversed the trial court’s decision and held that every PAGA action necessarily includes an individual PAGA claim. It directed the lower court to compel arbitration of Leeper’s individual PAGA claim and stay litigation of the representative portion.

Q: What Makes Leeper v. Shipt Significant for California Workers?

A: The case could significantly shape how employers and employees handle arbitration agreements in PAGA litigation across California, particularly in cases where workers are classified as independent contractors.

Q: What Does “Stay the Representative Claim” Mean?

A: “Staying the representative claim” means the court pauses proceedings on the representative portion while the arbitrable individual portion goes forward in arbitration. The Court of Appeal said California’s procedural rules require that kind of stay once arbitration has been ordered on an issue involved in the pending action.

Q: How Does California Labor Law Define an Independent Contractor?

A: According to California labor law, an independent contractor is a worker who is free from the hiring entity's control, performs work outside the company's normal business, and operates an independently established business. California strictly applies the "ABC test," presuming workers are employees unless all three factors of the standard test are met.

If you have questions about PAGA claims, arbitration agreements, worker misclassification, or other California employment law issues that may affect your right to seek penalties for Labor Code violations, the employment law attorneys at Blumenthal Nordrehaug Bhowmik De Blouw LLP can help. Contact one of our offices in Los Angeles, San Diego, San Francisco, Sacramento, Riverside, or Chicago today to learn how to hold your employer accountable.