Arbitration Agreements Class Action Arbitration Waivers

News & Analysis as of

2015 Employment Bills Moving Through The CA Legislative Process

Thursday, June 5 marked the last day for bills to pass out of their house of origin in the California Legislature. Here is a summary of some key employment bills that made it through (followed by some significant bills that...more

Justices Pass on Second Opportunity to Resolve the California PAGA Divide in the Bridgestone Case

For a second time the U.S. Supreme Court declined to hear a case challenging a California Supreme Court holding that the state’s Private Attorneys General Act (PAGA) could not be waived in a mandatory arbitration agreement....more

NLRB Refuses to Approve Withdrawal of Charges Despite Settlement of Class Action Case

We know that, among many other common employer policies, the NLRB considers many mandatory arbitration agreements to be unlawful, particularly where they prohibit class or collective actions. See Murphy Oil USA, Inc., 361...more

Supreme Court Denies Review of PAGA Waiver Case… Again

In a move that will undoubtedly frustrate California employers, the United States Supreme Court has denied review of Bridgestone Retail Operations v. Milton Brown, a California Supreme Court case which held that Private...more

NLRB Holds Firm on its View that Class/Collective Action Waivers in Arbitration Agreements Violate the NLRA

Despite overwhelming judicial disapproval, the NLRB simply will not relent in its view that mandatory arbitration agreements containing class/collective action waivers violate the National Labor Relations Act....more

Arbitration Agreement With PAGA Waiver And Opt Out Provision Deemed Unenforceable

Last month, a California Court of Appeal invalidated an arbitration agreement for including a representative action waiver combined with a non-severability clause....more

Circuit Courts Address Impact of Arbitration Agreements on Labor Class and Collective Actions

In Conners v. Gusano’s Chicago Style Pizzeria, plaintiffs, former employees of defendant, brought a collective action alleging violations of the Fair Labor Standards Act. Defendant responded by implementing a binding...more

Consumer Financial Protection Bureau’s Dodd-Frank Study Scrutinizes Arbitration Agreements & Class Action Waivers

On Tuesday, the Consumer Financial Protection Bureau (“CFPB”) released its long-awaited “Arbitration Study: Report to Congress, pursuant to Dodd–Frank Wall Street Reform and Consumer Protection Act § 1028(a)”, which presents...more

UPDATE: SCOTUS Denies Petition For Cert In Iskanian

On June 24, 2014, the California Supreme Court issued a controversial decision in Iskanian v. CLS Transportation Los Angeles, LLC. While the Court in Iskanian confirmed that an express class action waiver in an employment...more

The Beginning of the End for Class Action Litigation? Why Justice Scalia and the Current Supreme Court Are Good for Business

In American Express Co. v. Italian Colors Restaurant, the Supreme Court confirmed what it had only hinted at two years earlier in AT&T Mobility, LLC v. Concepcion. In a holding authored by Justice Scalia, the Court made plain...more

Who Determines if Class Arbitration is Available? Why it Matters and Will the Supreme Court Decide

In the wake of several favorable U.S. Supreme Court decisions, companies increasingly are using arbitration agreements to control their exposure to class action liability. Although recent cases have reinforced the power of...more

Multiple PAGA Representative Claims Crumble As Federal Courts Continue To Reject Iskanian and Enforce Arbitration Agreements...

When the California Supreme Court decided Iskanian v. CLS Transp. Los Angeles, LLC, 59 Cal. 4th 348 (2014), this June, some legal commentators assumed that employees could not waive pre-litigation claims under the Private...more

Who Decides the Issue of Class Arbitration?

Two districts of the California Court of Appeal recently issued significant decisions on arbitration agreements. In a published case, the Fourth Appellate District of the California Court of Appeal held that if the...more

NLRB Reaffirms D.R. Horton Decision Invalidating Arbitral Class Action Waivers

In a controversial decision that rejects the precedent of numerous federal and state courts, the National Labor Relations Board (NLRB) has reaffirmed its earlier decision in D.R. Horton, Inc., 357 NLRB No. 184 (2012). In...more

Murphy Oil USA, Inc.: NLRB Holds on Class Action Arbitration Agreements - NLRB Reaffirms Its 2012 D.R. Horton Ruling Despite...

The National Labor Relations Board (Board) in Murphy Oil USA, Inc. and Sheila M. Hobson (Murphy Oil) refused to back away from its controversial 2012 ruling in D.R. Horton, Inc. and Michael Cuda (D.R. Horton) finding class...more

No Class Action Waivers in Arbitration Agreements, Says NLRB

The National Labor Relations Board (NLRB) has decided to follow its own oft-criticized 2012 decision in D.R. Horton, holding that arbitration agreements barring class action lawsuits about working conditions, which are signed...more

California Court Implements Iskanian, Finds Agreement Waiving Representative Claims Under PAGA Unenforceable

Ybarra v. Apartment Investment and Management Company, No. B245901 (October 7, 2014): A California Court of Appeal recently affirmed a trial court decision finding that a class action waiver provision in an employee’s...more

Recent Cases of Note - Class Action Quarterly: Volume 2, Issue 3

Fifth Circuit Addresses CAFA’s Local Controversy Exception - The Court of Appeals for the Fifth Circuit recently held that courts should only look to the complaint in effect at the time of removal when determining if...more

Arbitration Denied In Class Action Where Plaintiff’s Trust Was A Party To Arbitration Agreement, But Plaintiff Was Not

In a life settlement transaction, in which a life insurance policy is sold by its owner to another for more than its cash-surrender value but less than the net death benefit, the seller contended that the broker and purchaser...more

Your Collective Action Waiver May Not Survive in a Vacuum: 6th Circuit Says Arbitration Was Key to Enforcing Waiver of FLSA Claims

The Sixth Circuit Court of Appeals recently noted in Killion et al. v. KeHE Distrib., LLC, Nos. 13-3357/4340 (6th Cir. Jul. 30, 2014) that it was the first appellate court to tackle head on the question of whether a...more

California Court Determines Arbitrator Must Decide Whether Class Claims Are Subject to Arbitration Agreement

When an employee who has signed an arbitration agreement files a lawsuit alleging individual claims along with class action claims, and the trial court has ordered him to take his individual claims to arbitration, what...more

Is a FLSA Collective Action Waiver by Itself in a Severance Agreement Enforceable? Sixth Circuit Says “No.”

Employers have recently enjoyed some victories in the U.S. Supreme Court and in the California Supreme Court regarding the use of class/collective action waivers in employment arbitration agreements (e.g. Italian Colors and...more

It’s a Whole New Game in Opalinski v. Robert Half International, Inc. – Third Circuit Rules That Courts Decide the Availability of...

There are significant differences between individual (or “bilateral”) arbitration and classwide arbitration that can substantially affect the nature of arbitration as a dispute resolution mechanism. Individual arbitration can...more

Fenwick Employment Brief - August 2014

Partial-Day Leave Deductions Lawful for Exempt Employees - A California court of appeal recently confirmed that employers may require exempt employees to use accrued leave for partial-day absences, even if shorter than...more

The Third Circuit Joins The Sixth And Holds That The Availability Of Class Arbitration Is A Substantive Question Of Arbitrability...

“Because of the fundamental differences between classwide and individual arbitration, and the consequences of proceeding with one rather than the other, … the availability of classwide arbitration is a substantive ‘question...more

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