Employment Law Commentary - Volume 24, No. 1 January 2012

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In this issue: Titans Clash and Uncertainty Abounds – The Ongoing Turmoil Regarding Enforceability of Mandatory Employment Arbitration Agreements in California and D.R Horton, Inc. - The NLRB Weighs in on Class Waivers.

Excerpt from 'Titans Clash...':

California has long been at odds with the liberal federal policy favoring arbitration that was established in the Federal Arbitration Act (FAA or Act). Congress enacted the FAA in 1925 to overcome “widespread judicial hostility” to arbitration and to prevent states from requiring a judicial forum for the resolution of claims that parties have agreed to resolve by arbitration.1 Yet California courts continue to show a willingness to set aside private arbitration agreements in favor of preserving claimants’ access to judicial and administrative forums. Although the U.S. Supreme Court has found a number of these laws and decisions to be preempted by the FAA, recent decisions by California courts indicate that the uncertainty surrounding the enforceability of mandatory employment arbitration agreements in California is far from over.

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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.

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