Class Action Arbitration Waivers

News & Analysis as of

CFPB’s Proposed Ban On Class Action Waivers Draws Widespread Criticism

In May 2016, the Consumer Financial Protection Bureau (“CFPB”) took another step in its effort to ban class action waivers in certain pre-dispute arbitration agreements for consumer financial products and services, formally...more

California Enacts Laws Aimed at Choice of Law Provisions in Arbitration Agreements and the Conduct of Arbitral Proceedings

Given California’s past resistance to mandatory arbitration agreements with class action waivers, it should come as no surprise that the state has now enacted two laws primarily directed at arbitration. On Sept. 25,...more

Litigating California Wage & Hour and Labor Code Class Actions

Introduction and Overview - Since the turn of the century, there has been a huge increase in the number of class action lawsuits alleging violations of California’s overtime laws or other Labor Code statutes and wage and...more

California Protects Employees’ Rights to Have Their Claims Heard in the State, Under California Law

In recent years, some employers doing business in the Golden State have required their employees to sign arbitration and employment agreements that require the employee to sue or arbitrate in – or under the law of – another...more

Second Circuit Panel Adheres To Circuit Precedent And Affirms Enforceability Of Employment Class Action Waivers

The Second Circuit issued a summary order affirming a decision by the Southern District of New York compelling arbitration pursuant to class-action and collective-action waivers contained in an employment arbitration...more

Ninth Circuit Invalidates Class Action Waivers in Mandatory Arbitration Agreements

At the end of 2015, Governor Jerry Brown vetoed AB 465, which would have banned mandatory arbitration agreements in the employment setting, including arbitration agreements with class action waivers. As many employers know,...more

Bi-partisan Congressmen seek arbitration safe harbor allowing class action waivers

Republican Congressman Randy Neugebauer, who chairs the House Financial Services Committee’s Subcommittee on Financial Institutions and Consumer Credit, and Democratic Congressman W. Lacy Clay, the Subcommittee’s Ranking...more

Ninth Circuit Finds That Requiring Employees to Sign Class Action Waivers Violates the NLRA

In a recent opinion, Morris v. Ernst & Young, the Ninth Circuit Court of Appeals followed the Seventh Circuit and held that employers violate the National Labor Relations Act (NLRA) when they require employees to sign an...more

Disgruntled Timeshare Owner’s Bid for Class Arbitration Thwarted

On August 30, the Northern District of California thwarted a disgruntled timeshare owner’s attempt to arbitrate her dispute against a timeshare developer on a classwide basis. A timeshare purchaser alleged that Wyndham, the...more

Don’t Wait: Review Your Company’s Arbitration Agreement Now

Many businesses ask their employees to agree to arbitration to resolve employment disputes because arbitration can be cheaper and faster than the court system. Arbitration can also be used as a shield to prevent the filing of...more

Recent Cases Signal Shifting Tides in Employment Arbitration

Many employers enter into arbitration agreements with their employees to expedite resolution and mitigate the risk of jury trials. For the most part, a proper arbitration agreement would have the effect of requiring both the...more

Ninth Circuit Holds That Class Action Waiver In Employment Agreement Is Unenforceable, Adding To The Circuit Split On The Issue

As a condition of employment, Ernst & Young’s employees were required to sign agreements that contained a “concerted action” waiver requiring employees to pursue legal claims against E&Y exclusively through arbitration, and...more

California Employment Law Notes - September 2016

Ninth Circuit Strikes Down Employer's Class Action Waiver - Morris v. Ernst & Young, LLP, 2016 WL 4433080 (9th Cir. 2016) - As a condition of employment, Stephen Morris and Kelly McDaniel were required to sign...more

Employment Law This Week®: Retaliation Guidance, Class Action Waivers, “Persuader Rule” Injunction, “Cat’s Paw” Doctrine [Video]

We invite you to view Employment Law This Week® - a weekly rundown of the latest news in the field, brought to you by Epstein Becker Green. We look at the latest trends, important court decisions, and new developments that...more

California Court of Appeal Rules Arbitration Agreement In Employee Handbook Is Not Enforceable

On August 22, 2016, a California Court of Appeal held that an arbitration agreement in an employee handbook did not create an enforceable agreement to arbitrate. Esparza v. Sand & Sea, Inc. et al., B268420 (Aug. 22, 2016). ...more

Working Around the Courtroom: Is Arbitration for You?

Within hours of Gretchen Carlson suing then-Fox News CEO Roger Ailes for sexual harassment, Ailes’ attorney responded that Carlson was “desperately attempting to litigate [her termination] in the press.” It didn’t take much...more

Employers Win Latest Round In Class Waiver Fight

2nd Circuit Refuses To Join Circuit Courts Siding With NLRB - Employers can breathe a sigh of relief after the 2nd Circuit Court of Appeals once again upheld the validity of class and collective action waivers in...more

Following Precedent: Second Circuit Reaffirms Position Upholding Arbitration Agreements With Class Action Waivers

Amid contrary decisions by the Seventh and Ninth Circuits, the Second Circuit followed its earlier precedent in Patterson v. Raymours Furniture Co., No. 15-2820 (Sept. 2, 2016), enforcing an Employment Arbitration Program...more

Ninth Circuit Addresses Employee Arbitration Agreements

In Morris v. Ernst & Young, LLP, the U.S. Court of Appeals for the Ninth Circuit recently reviewed an arbitration agreement that required employees “as a condition of employment” “to sign agreements not to join with other...more

Got Arbitration Agreements With Class Waivers? The Fight May Not Be Over

Since the United States Supreme Court upheld the validity of class action waivers in commercial consumer arbitration agreements several years ago, many employers have found arbitration agreements with class action waivers a...more

Week in Review: The Uphill Battle of a Rule 23(f) Appeal and More Spokeo

This week we take a look at a Ninth Circuit decision giving short shrift to a Rule 23(f) appeal and revisit two repeat players on Class Action Countermeasures: arbitration clauses and challenges to a class representative’s...more

Fifth Circuit Follows D.R. Horton And Murphy Oil Precedent, Ruling That An Arbitration Agreement Prohibiting Employee Class Or...

The Fifth Circuit refused to enforce an order of the NLRB that found an arbitration agreement was invalid because it waived an employee’s right to maintain employment related class or collective actions....more

Class Actions Back from Verge of Extinction

Back in 2011 it looked like class actions would join the mastodon, the dodo bird and other extinct species. In AT&T v. Mobility v. Concepcion, Justice Scalia and the conservative majority held that the Federal Arbitration...more

Class Action Waivers in Employment Agreements Are No Longer Enforceable in the Ninth Circuit

If your company uses a class action waiver in your employment agreements and you are located in Alaska, Arizona, California, Guam, Hawaii, Idaho, Montana, Nevada, the Northern Mariana Islands, Oregon, or Washington, you are...more

Adding to Circuit Split, Divided Ninth Circuit Finds Concerted Action Waiver in Ernst & Young’s Employment Agreement Unenforceable...

Ernst & Young’s (“E&Y”) employment agreements contained “separate proceedings” and arbitration provisions, which together required that disputes be resolved individually through arbitration, rather than collectively through...more

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