General Business Alternative Dispute Resolution (ADR) Labor & Employment

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California Court Gives The Green Light For Arbitration Of Wrongful Termination Suit

Sanchez v. CarMax Auto Superstores California, LLC, B244772 (March 4, 2014): The California Court of Appeal recently found that an employer’s arbitration agreement and dispute resolution rules and procedures (DRRP) are not...more

Russell v. Citigroup Inc. – Language in Revised Arbitration Agreement Torpedoes its Application to Pending Class Action

A Sixth Circuit panel found the text of an updated arbitration agreement indicated it did not apply to a wage and hour class action already pending when the agreement was signed. Russell v. Citigroup, Inc., Case No. 13-5994...more

Arbitration Clause Survives Contract Termination, Sixth Circuit Holds

Can an employer compel arbitration in accordance with an arbitration clause in a contract that has terminated? The U.S. Court of Appeals for the Sixth Circuit recently answered this question in the affirmative....more

FLSA Does Not Prohibit Mandatory Individual Arbitration of Claims

Employers concerned about the cost and unpredictability of the civil judicial system may elect to require binding individual arbitration of disputes with their employees. In response, employees trying to get their claims...more

Eleventh Circuit Refuses to Enforce Post-Suit Arbitration Agreements Based upon Employer Misconduct

The British have a phrase “too clever by half” to describe complex schemes that ultimately won’t work. We all know from cases such as Concepcion, Stolt-Nielsen, Italian Colors, and their progeny that arbitration...more

Class Arbitration Waivers Validated by the Eleventh Circuit in FLSA Actions

The Eleventh Circuit in Walthour v. Chipio Windshield Repair, LLC, No. 13-11309 (11th Cir. March 21, 2014) recently joined the Second, Fourth, Fifth, and Eighth Circuits in upholding class arbitration waivers in a Fair Labor...more

Arbitration Clauses Survive Their Contracts 99% Of The Time

The Sixth Circuit recently answered a question I get asked regularly: does an arbitration clause survive the termination of the contract containing it? I usually say yes, and thankfully the Sixth Circuit backed me up....more

Employer’s Attempt To Avoid Ongoing Collective Action By Forcing Potential Plaintiffs To Sign Arbitration Agreements Fails

In the past year, if I wrote about “FLSA” and “arbitration” in the same post, it likely meant that another federal court had found employers can include class action waivers in their employment contracts without violating the...more

Sixth Circuit Holds That Duty To Arbitrate Survives Expiration of Employment Contract, Requires Individual Arbitration

With the Supreme Court having issued a series of decisions overruling many of the roadblocks to the enforcement of arbitration agreements in the class context, we are now seeing more courts fill in the gaps as to whether and...more

Employer’s Handbook Disclaimer Renders Agreement To Arbitrate Unenforceable, New Jersey District Court Holds

Employee handbooks typically contain an overview of company history, a set of employment policies and general guidance, and a clear and prominent disclaimer that nothing in the handbook creates a contract of employment...more

Eleventh Circuit Agrees Employees Can Waive FLSA Collective Action Rights

The U.S. Court of Appeals for the Eleventh Circuit has become the fifth appellate court to hand down a victory for employers in the fight over enforceability of class action waivers. The court ruled that an arbitration...more

New Legal Guidance For Modifying Arbitration Agreements

Employers have had some reluctance to expressly reserve the right to modify arbitration agreements in light of arguments that the agreements might be found illusory and unenforceable. Last week, the Second Appellate District...more

Eleventh Circuit Upholds Enforceability Of Class Action Waiver

Executive Summary: The Eleventh Circuit recently held that an arbitration agreement that waives an employee's ability to bring a collective action under the Fair Labor Standards Act (FLSA) is enforceable under the Federal...more

Selecting a Party-Appointed Arbitrator in the US

Arbitration analysis: Selecting an arbitrator is one of the most important strategic considerations in an arbitration. While an arbitrator's neutrality and impartiality is widely assumed to be the norm (especially...more

SCOTUS Will Not Reconsider Fate Of Delaware’s Business Arbitrations; NLRB’s Class Action Arbitration Decision Loses Again

SCOTUS announced today that it would not review the Third Circuit’s decision in Strine v. Delaware Coalition for Open Government, Inc, holding that Delaware’s Chancery Court could not offer its judges’ services as neutral...more

Focused on Franchise Law - March 2014

FRANCHISOR 101: Franchisee Not Bound by Arbitration Provision - In March 2013, Edison Subs, LLC, a Subway franchisee/transferee, filed a complaint in New Jersey against Subway and Aliya Patel (the original...more

Supreme Court: Arbitrators, Not Courts, Decide Whether A Suit May Proceed To Arbitration

On March 5, 2013, the U.S. Supreme Court upheld an arbitration panel’s award and broadened arbitrators’ authority to determine preliminary issues in arbitration agreements. Although the case concerned a treaty dispute between...more

Brownstein Trial Victory Provides Executive Compensation Plan Guidance

Brownstein Hyatt Farber Schreck attorneys and their client recently scored another trial victory. The outcome provides lessons for Brownstein’s clients that utilize variable compensation plans for their...more

California's Gentry Rule Under Challenge

Executive Summary: The U.S. Supreme Court has vacated the decision of a California state court, which held that a trial court should apply the factors set out in the California Supreme Court's 2007 decision in Gentry v....more

Fifth Circuit Delivers Crippling Blow to Controversial NLRB Class Action Waiver Theory

Arbitration is generally supposed to be faster, cheaper, and more predictable than litigation. Homebuilder D.R. Horton, like many other employers, certainly believed this when, in 2006, it began requiring employees to sign...more

Nevada Clarifies Medical Marijuana Law and Enacts New Law on Arbitration Agreements

Two notable developments to Nevada employment law took place in 2013. The Nevada Legislature not only clarified some ambiguities in the medical marijuana law as it relates to employers, but also enacted a new arbitration...more

To arbitrate arbitrability or not to arbitrate arbitrability? That is the question!

Whether the parties to a collective bargaining agreement (“CBA”) agreed to arbitrate arbitrability (i.e. whether an issue is subject to arbitration at all) was the key issue ConocoPhillips, Inc. v. Local 13-0555 United...more

Compelling Individual Arbitration Violates National Labor Relations Act? It Does According to ALJ

Joining the ever growing list of opinions on the arbitrability of class claims, an NLRB Administrative Law Judge recently ruled that an arbitration agreement that did not expressly bar workers from bringing class or...more

D.R. Horton on Steroids: NLRB Invalidates Arbitration Agreement Without Class Waiver

As reported previously here, the National Labor Relations Board (“NLRB” or the “Board”) in D.R. Horton, Inc., 357 NLRB No. 184 (2012), held that requiring employees to enter into an arbitration agreement containing a...more

D.R. Horton Still Alive: NLRB Judge Says Employer’s Intent to Compel Employees to Waive Class Claims Renders Arbitration Clause...

Although the Circuit Courts of Appeals that have addressed the issue currently stand united in the view that class arbitration waivers in individual employment contracts do not violate the National Labor Relations Act...more

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