In Iskanian v. CLS Transportation (2014) 59 Cal.4th 348, an employee signed an agreement with his employer providing for binding arbitration of any and all claims arising out of his employment. (Iskanian, supra, 59 Cal.4th at p. 360.) The agreement contained a provision stating they agreed "'each will not assert class action or representative action claims against the other in arbitration or otherwise ... .'" (Iskanian, at pp. 360-361.) The employee sued the employer, and after some maneuverings in the courts, during which time the California Supreme Court decided Gentry v. Superior Court (2007) 42 Cal.4th 443 64 Cal. Rptr. 3d 773, 165 P.3d 556 (Gentry),3 the employee filed a first amended complaint alleging Labor Code violations and violations of the UCL. He asserted those claims as an individual, a putative class representative seeking damages, and in a representative capacity under PAGA. (Iskanian, supra, 59 Cal.4th at p. 361.) After the United States Supreme Court decided AT&T Mobility LLC v. Concepcion (2011) 563 U.S. 333 179 L. Ed. 2d 742, 131 S.Ct. 1740 (Concepcion)4 the employer moved to compel arbitration and dismiss the class claims, arguing Concepcion had invalidated Gentry. (Iskanian, at p. 361.) The trial court granted the motion, ordering the individual claims to arbitration and dismissing the class claims with prejudice. (Ibid.) The appellate court affirmed. (Ibid.) The California Supreme Court addressed, among other things, whether the FAA preempted a state's refusal to enforce a provision in an arbitration agreement waiving the right to class action proceedings, and the viability of its holding in Gentry. (Iskanian, supra, 59 Cal.4th at p. 359.) It held that under Concepcion, the FAA preempted Gentry's rule, which had invalidated class waivers where "'a class arbitration is likely to be a significantly more effective practical means of vindicating the rights of the affected employees than individual litigation or arbitration ... .'" (Iskanian, 59 Cal.4th at pp. 363, 366.) Under Concepcion, state law rules against class action waivers, even if they have an exculpatory effect, are invalid because requiring the parties to engage in class arbitration or litigation after they had agreed to individual arbitration would interfere with the fundamental attributes of arbitration as a streamlined, efficient and less expensive dispute resolution mechanism. (Iskanian, at pp. 362-364.) Even where a class arbitration would be a more effective or practical means of vindicating the employee's rights, a state law rule against class action waivers "would still be preempted because states cannot require a procedure that interferes with fundamental attributes of arbitration 'even if it is desirable for unrelated reasons.'" (Id. at p. 364.) Iskanian then turned to whether an employee's waiver of his or her right to bring a representative claim under the PAGA (which we refer to generally as a PAGA waiver) was permissible under California law, and if not, whether the FAA preempted a state law rule prohibiting such waivers. (Iskanian, supra, 59 Cal.4th at pp. 378, 372.) On that question, it held an employee's right to bring a PAGA claim was "unwaivable." (59 Cal.4th at p. 383.) The court announced its holding as follows: "As explained below, we conclude that an arbitration agreement requiring an employee as a condition of employment to give up the right to bring representative PAGA actions in any forum is contrary to public policy." (Id. at p. 360.) The court explained that by enacting the PAGA, the Legislature declared that it was "in the public interest to allow aggrieved employees, acting as private attorneys general, to recover civil penalties for Labor Code violations, with the understanding that labor law enforcement agencies were to retain primacy over private enforcement efforts." (Iskanian, supra, 59 Cal.4th at p. 379.) Thus, under the PAGA, "'an "aggrieved employee" may bring a civil action personally and on behalf of other current or former employees to recover civil penalties for Labor Code violations. . Of the civil penalties recovered, 75 percent goes to the Labor and Workforce Development Agency, leaving the remaining 25 percent for the "aggrieved employees."'" (Iskanian, at p. 380.) It summarized the Labor Code's prefiling notice requirements that the aggrieved employee "describe facts and theories supporting the violation." (Ibid.) It pointed out the Labor Code permitted an employee to commence a civil action only after the Labor and Workforce Development Agency either decides not to investigate or issues a citation, or fails to do so within specified periods of time. (Ibid.) Thus, Iskanian held, an aggrieved employee's PAGA action for civil penalties is a type of qui tam action; it functions as a substitute for an action brought by the government itself, the government is always the real party in interest, and a judgment thus binds all those, including nonparty aggrieved employees, who would be bound by a judgment in an action brought by the government. (Iskanian, at pp. 381-382.) In view of the nature of a PAGA claim, the court held: "Where, as here, an employment agreement compels the waiver of representative claims under the PAGA, it is contrary to public policy and unenforceable as a matter of state law." (Iskanian, supra, 59 Cal.4th at p. 384.) It reasoned such an agreement would contravene two statutes undergirding the unwaivability of statutory rights, Civil Code sections 1668 and 3513, which are themselves derived from public policy. (Iskanian, at p. 382.) Because the Legislature's purpose in enacting the PAGA was to empower employees to enforce the Labor Code as agency representatives, a PAGA waiver disabled that mechanism, and thus had as its "'object, ... indirectly, to exempt the employer from responsibility for its own ... violation of law.' " (Iskanian, at p. 383.) Such an agreement also violated Civil Code section 3513 in that "agreements requiring the waiver of PAGA rights would harm the state's interests in enforcing the Labor Code and in receiving the proceeds of civil penalties used to deter violations." (Iskanian, at p. 383.) The court continued: "Of course, employees are free to choose whether or not to bring PAGA actions when they are aware of Labor Code violations. (See Armendariz v. Foundation Health Psychcare Services, Inc. (2000) 24 Cal.4th 83, 103, fn. 8 99 Cal. Rptr. 2d 745, 6 P.3d 669 waivers freely made after a dispute has arisen are not necessarily contrary to public policy.) "But it is contrary to public policy for an employment agreement to eliminate this choice altogether by requiring employees to waive the right to bring a PAGA action before any dispute arises." (Iskanian, 59 Cal.4th at p. 383.) Finally, Iskanian observed the rule against PAGA waivers did not frustrate the FAA's objectives because the FAA's aim was to ensure an efficient forum for resolution of private disputes, unlike a PAGA action, which constitutes a dispute between an employer and the Labor and Workforce Development Agency. (Iskanian, supra, 59 Cal.4th at p. 384.) "A PAGA claim lies outside the FAA's coverage because it is not a dispute between an employer and an employee arising out of their contractual relationship. It is a dispute between an employer and the state, which alleges directly or through its agents--either the Agency or aggrieved employees--that the employer has violated the Labor Code." (Iskanian, at pp. 386-387.) "There is no indication that the FAA was intended to govern disputes between the government in its law enforcement capacity and private individuals." (Id. at p. 385.) The court concluded: "Our FAA holding applies specifically to a state law rule barring predispute waiver of an employee's right to bring an action that can only be brought by the state or its representatives, where any resulting judgment is binding on the state and any monetary penalties largely go to state coffers." (Id. at p. 388, italics added.) Iskanian held that the employer could not compel the waiver of the employee's representative PAGA claim but that the agreement was otherwise enforceable according to its terms. (Id. at p. 391.)