NEWS ALERT: California Supreme Court Issues Mixed Bag Decision Re: Class and Representative Waivers in Employment Arbitration Agreements

NEWS ALERT: California Supreme Court Issues Mixed Bag Decision Re: Class and Representative Waivers in Employment Arbitration Agreements

Today, the California Supreme Court issued its long-awaited decision in Iskanian v. CLS Transportation Los Angeles, Inc. The Court upheld the general enforceability of class waivers in mandatory employment arbitration agreements, concluding that its prior decision holding to the contrary in Gentry v. Superior Court, 42 Cal.4th 443 (2007) had been abrogated by U.S. Supreme Court precedent. Importantly, however, the Court created an exception for representative actions under the Labor Code Private Attorneys General Act of 2004 (“PAGA”) (Lab. Code, § 2698 et seq.), holding that “an arbitration agreement requiring an employee as a condition of employment to give up the right to bring representative PAGA actions in any forum is contrary to public policy.” Please stay tuned for a more detailed analysis of the decision in this week’s newsletter.

- See more at: http://www.manatt.com/Employment_Law/NEWS_ALERT__California_Supreme_Court_Issues_Mixed_Bag_Decision_Re__Class_and_Representative_Waivers_in_Employment_Arbitration_Agreements.aspx?search=1#sthash.y7n3JovM.dpuf

Today, the California Supreme Court issued its long-awaited decision in Iskanian v. CLS Transportation Los Angeles, Inc. The Court upheld the general enforceability of class waivers in mandatory employment arbitration agreements, concluding that its prior decision holding to the contrary in Gentry v. Superior Court, 42 Cal.4th 443 (2007) had been abrogated by U.S. Supreme Court precedent. Importantly, however, the Court created an exception for representative actions under the Labor Code Private Attorneys General Act of 2004 (“PAGA”) (Lab. Code, § 2698 et seq.), holding that “an arbitration agreement requiring an employee as a condition of employment to give up the right to bring representative PAGA actions in any forum is contrary to public policy.” Please stay tuned for a more detailed analysis of the decision in this week’s newsletter.

 

 

Topics:  Arbitration, Arbitration Agreements, Class Action, Class Action Arbitration Waivers, Gentry, Iskanian

Published In: Alternative Dispute Resolution (ADR) Updates, Civil Procedure Updates, General Business Updates, Conflict of Laws Updates, Labor & Employment Updates

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.

© Manatt, Phelps & Phillips, 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 »