Compelled by U.S. Supreme Court precedent advancing arbitration as a method of dispute resolution, the California Supreme Court in Iskanian v. CLS Transportation Los Angeles, LLC (No. S20432, June 23, 2014) held that its decision in Gentry v. Superior Court is no longer good law and that arbitration agreements with mandatory class action waivers are generally enforceable. However, the court carved out an exception for representative actions brought under California’s Private Attorneys General Act of 2004 (“PAGA”), holding that employers cannot force employees to waive their right to bring representative PAGA actions in any forum.

The court’s decision in Iskanian means that while employers may limit their exposure to wage and hour class actions by using arbitration agreements that include class action waivers, employers still face representative actions based on unwaivable PAGA claims, much of which remain uncharted territory.

Please see full Alert below for more Information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Pillsbury Winthrop Shaw Pittman LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×
×