This is a putative class and Private Attorneys General Act (“PAGA”) action. Plaintiffs allege that Defendant and Cross-Complainant Allied Construction Management, Inc. dba Allied Group Renovation Experts, a contractor licensed in California, improperly hires unlicensed contractors who pay their workers with a daily lump sum, in violation of California law. Allied has filed a Cross-Complaint against Defendants Warren Painting and Drywall, LLC and DM&G Construction/Remodeling, LLC, alleging that Warren hired DM&G to perform work on its subcontract with Allied without permission, and Allied did not learn that Warren had failed to obtain a California contractor’s license and to properly compensate workers until receiving Plaintiffs’ claim.

Before the Court is Warren’s motion to dismiss the Cross-Complaint, which Allied opposes. As discussed below, the Court GRANTS Warren’s motion, BUT will STAY this case instead of dismissing it.

I. BACKGROUND

Allied alleges that it contracted with the