An electro-magnetically actuated pawl clutch is adapted to establish a fixed overdrive ratio in a powersplit type hybrid gearing arrangement. The electro-magnetically actuated clutch includes a first race splined to the transmission input shaft and a second race integrally formed into a first gear that is supported for rotation about the input shaft. Electrical current in a non-rotating coil establishes a magnetic field in the first race. The magnetic field causes a set of pawls to pivot with respect to the first race and to engage a cam surface in the second race. The pawls and cams are designed such that, when engaged, the second race can rotate faster than the inner race but cannot rotate slower. The first gear meshes with a second gear fixed to the transmission output shaft.