California Bans Out-of-State Law

By Bill Wright California has passed a novel piece of employment law.  New section 925 of the California Labor Code prohibits employers from requiring employees to sign an agreement that (a) forces the employee to litigate or arbitrate outside California if the claims arise from events (e.g. living and working) inside California; and (b) specifies […]

SCOTUS Benchslaps Cali…Again

By John Alan Doran This morning, the U.S. Supreme Court struck down a California Court of Appeals decision invalidating class action arbitration waivers. DIRECTV, Inc. v. Imburgia, (No. 14-462 December 14, 2015). DIRECTV’s customer service contract contained a mandatory arbitration clause.  That clause also waived the customer’s right to pursue a class action in arbitration.  […]

A Court Abandons Horton

By Bill Wright In February 2013, we reported on a federal court in Idaho that followed the NLRB’s D.R. Horton decision and ruled that agreements to arbitrate all claims solely on an individual basis were unenforceable. (Click here to read the post.) Here’s the rest of the story. After failing to compel arbitration, the employer […]

Tactics Kill Arb Agreement

By Lori Phillips In Roe v. SFBSC Management, LLC, No. 14-cv-03616 (N.D. Cal. Mar. 2, 2015), a federal district court in California rejected a night club’s attempt to compel arbitration by a class of performers who claimed they were misclassified as independent contractors. The court rejected the terms of the arbitration agreement as “substantively unconscionable” […]

California Almost Goes Along on Class Waivers

By Lori Wright Keffer The California Supreme Court has ruled that class action waivers in employment arbitration agreements are enforceable – with one gaping exception. Iskanian v. CLS Transportation Los Angeles, L.L.C., S204032 (Cal. June 23, 2014). California law is now consistent with the United States Supreme Court’s 2011 holding in AT&T Mobility L.L.C. v. […]

Arbitration “Survives”

In Huffman v. Hilltop Companies, LLC, No. 13-3938 (6th Cir. Mar. 19, 2014), two plaintiffs alleged their former employer violated the Fair Labor Standards Act. The employer pointed to an employment agreement containing an arbitration clause and moved to compel arbitration. Plaintiffs countered that, because the arbitration clause was not one of the 12 paragraphs […]

Court Nixes Non-Appealability Clause in Arbitration Agreement

By Lori Phillips Generally speaking, arbitration is a matter of contract, and arbitration agreements must be enforced according to their terms. The Ninth Circuit recently issued a caveat, however. In In re Wal-Mart Wage & Hour Employment Practices Litigation, No. 11-17718 (9th Cir. Dec. 17, 2013), an issue of first impression, the Ninth Circuit held […]

Excuses Don’t Get Employee Out of Arbitration

By Lori Phillips An employer rolled out a dispute resolution program that included arbitration. The employer mailed brochures, held a mandatory video screening during work hours, and electronically posted details about the program. Employees had two opportunities to opt-out of the arbitration provision and were told that failure to opt-out would result in their inability […]

Form Or Substance

By Bill Wright In a much-anticipated case the U.S. Supreme Court today reached a decidedly unremarkable conclusion. The gist of the U.S. Supreme Court’s new decision on class action arbitration agreements is old hat—courts may overturn an arbitrator’s decision under the Federal Arbitration Act only if the arbitrator acts outside the authority granted in the […]