Arbitration Agreements Federal Arbitration Act

News & Analysis as of

Ninth Circuit, California Agree: Employee Waivers of PAGA Representative Claims Unenforceable

A divided panel in the U.S. Court of Appeals for the Ninth Circuit recently issued a 2-1 decision in the anticipated case of Sakkab v. Luxottica Retail North America, Inc. (Luxottica). Over a strongly worded dissent, the...more

New York Times article omits critical pro-arbitration facts

An article on consumer arbitration in this week’s Sunday New York Times concludes that “[b]y inserting individual arbitration clauses into a soaring number of consumer and employment contracts, companies… devised a way to...more

NC Business Court On Arbitrability: Clear And Unmistakable

You may have pondered over the question whether a Judge or an Arbitrator decides if a particular dispute is subject to an agreement to arbitrate. If you have wondered who makes that sort of decision, it's actually not an...more

Arbitration Clauses Under Attack – Do They Harm Consumers?

Arbitration clauses are a common feature in a large part of my business litigation practice. They are generally enforceable under both federal and state statutes (e.g., the Federal Arbitration Act and the Tennessee Uniform...more

Fifth Circuit Stands Pat, Again Rejects NLRB Attempt To Void Class And Collective Action Waiver

As expected, the Fifth Circuit once again has rejected the NLRB’s highly controversial position that the National Labor Relations Act (“NLRA”) prohibits employers from requiring mandatory arbitration agreements that preclude...more

Governor Brown Vetoes Controversial AB 465

On October 11, 2015, Governor Brown vetoed the controversial AB 465, legislation that attempted to make a sweeping prohibition of all mandatory arbitration agreements as a condition of California employment. AB 465 required...more

Fenwick Employment Brief

Legislative Update - Governor Brown recently signed into state law the following employment law bills (among others): SB 358—Referred to as the California Fair Pay Act, this law is directed at closing the pay...more

The Supreme Court Preview, Part II: Tuning Up Arbitration Clauses

This is the second post in our series “The Supreme Court Preview,” - California state and federal courts have a rocky history with the U.S. Supreme Court, as the highest court in the land has repeatedly reversed the...more

Responding to Professor Sovern: how Dodd-Frank Section 1028 limits the CFPB’s power to regulate arbitration agreements

In a blog post earlier this week, Professor Jeff Sovern took issue with statements made by a legal expert that suggest an amendment to the Federal Arbitration Act would be necessary for the CFPB to ban class action waivers in...more

CFPB Announces Intent to Commence Arbitration Rulemaking

On October 7, the Consumer Financial Protection Bureau (CFPB) announced that it is considering two rulemaking proposals that would severely limit the use of pre-dispute arbitration clauses in consumer financial service...more

McCarran-Ferguson Lands a Jab on the FAA

As we reported in this space late last year, the U.S. Supreme Court’s decision in AT&T Mobility LLC v. Concepcion, 131 S.Ct. 1740, 1745 (2011), tilted the scales toward federal power in the field of arbitration, preempting...more

Struggle At The Supreme Court Over Arbitration Clauses

The U.S. Supreme Court returned to familiar territory last week in DirecTV Inc. v. Imburgia (argued Oct. 6, 2015): the enforceability of an arbitration clause in a consumer contract containing a class action waiver. But...more

California Governor Vetoes Bill Prohibiting Mandatory Employment Arbitration Agreements

Employers can breathe a big sigh of relief for now: Governor Jerry Brown vetoed SB 465, which threatened to outlaw mandatory employment arbitration agreements in California. In his veto message, the Governor noted that there...more

Governor Brown Vetoes Blanket Ban on Arbitration Agreements, But Signals Potential Support of More Tailored Legislation

Governor Brown got it right when he vetoed Assembly Bill 465, which would have restricted the enforcement of arbitration agreements requiring the arbitration of claims brought against employers for violations under the...more

A Federal Ban on Arbitration Agreements in Nursing Homes? Senators’ Comment on CMS Proposed Rule Ignores Congressional Intent and...

In July, the Centers for Medicare & Medicaid Services (CMS) proposed changes to the requirements for long-term care facilities, including implementation of new restrictions on the use of binding arbitration agreements between...more

Draft Kings Class Action Argues Data Leak Revealed “Insider Trading” – But Can Case Survive Arbitration Clause?

Draft Kings and Fan Duel, competing daily fantasy sports (DFS) sites, have been vying for attention by flooding the airwaves with a reported 60,000 commercials this year. However, a recent data leak has resulted in less...more

Justices Take On Another California Rule – When an Arbitration Agreement Is Too Flawed to Enforce

The U.S. Supreme Court has agreed to review whether the Federal Arbitration Act (FAA) preempts a California state court rule on unconscionable provisions that is purportedly applied more stringently to arbitration agreements...more

PAGA In The News – Ninth Circuit Sides with California Supreme Court On Enforcement of PAGA Waivers and California Amends The...

The Ninth Circuit Decision - Delivering a perhaps unexpected blow to employers, the Ninth Circuit sided with the California Supreme Court earlier this week in upholding the state-court-fashioned Iskanian rule, which...more

Down The Arbitration Rabbit Hole: Ninth Circuit Refuses To Enforce Employee’s Waiver Of PAGA Claims

On September 28, 2015, the Ninth Circuit held in Shukri Sakkab v. Luxottica Retail North America, Inc. that the FAA does not preempt the rule that the California Supreme Court enunciated in Iskanian v. CLS Transportation that...more

Ninth Circuit Steals a PAGe from California Courts’ Playbook

Since the California Supreme Court’s 2014 ruling in Iskanian v. CLS Transportation that claims under the Private Attorneys General Act (“PAGA”) are not subject to arbitration, California federal district courts have rejected...more

Arbitration of Nursing Home Suits: Take Two

Quasi Tort Reform in Nursing Home Litigation Is on the Way! Last fall, I posted a blog about the national trend of including arbitration provisions in nursing home admission agreements. This trend peaked following the...more

Ninth Circuit’s Pro-PAGA Decision Is Not the Death Knell for Class Waivers in Arbitration Agreements

This week, in Sakkab, et al v. Luxottica Retail North America, Inc., the Ninth Circuit ruled that an employee cannot waive the right to bring a representative action under the Private Attorneys General Act (“PAGA”) through an...more

SCOTUS Selects Second Arbitration Case For 2015 Term

2015 was a dry spell in arbitration decisions from the U.S. Supreme Court, but 2016 promises to be much more interesting. In addition to the California case being heard next week, SCOTUS just granted certiorari over another...more

Ninth Circuit Blesses Iskanian

On September 28, 2015, the Ninth Circuit Court of Appeals issued a 2-1 decision in the long-awaited case of Sakkab v. Luxottica Retail North America, Inc. (No. 13-55184, D.C. No. 3:12-cv-00436-GPC-KSC) (“Sakkab”). The Court...more

9th Circuit Rejects Representative Action Waivers for PAGA Claims

If you read one thing... - With 9th Circuit ruling, California federal courts no longer a potential channel for employers to enforce representative action waivers for PAGA claims...more

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