Californians can sue employers in the name of the state for violating employment rights, the Ninth Circuit held on Monday in the first federal ruling to address limits placed on the Private Attorneys General Act (PAGA) by the US Supreme Court.

Enacted in 2004 to help Californian labour agencies enforce employment laws, PAGA has been used by workers to sue for violations of minimum wage and overtime legislation, as well as rest breaks and sick pay. Employees that bring successful claims collect 25% of the civil penalties that would go to the state.