News & Analysis as of

Employment Law Commentary -- Volume 25, Issue 7 July 2013 -- Supreme Court Buttresses Class Action Waivers

In its recent decision in Am. Express Co. v. Italian Colors Rest., 133 S. Ct. 2304 (2013), the U.S. Supreme Court further buttressed the use of class-action waivers in arbitration agreements, finding such waivers enforceable...more

U.S. Supreme Court alert: American Express Co. v. Italian Colors Restaurant

Prior to its summer recess, the U.S. Supreme Court issued another decision concerning class arbitration which has implications for unionized and non-unionized employers with agreements to arbitrate workplace disputes....more

Did You Know…U.S. Supreme Court Strengthens Class Action Waivers In AmEx Ruling

In another employer-friendly decision, the U.S. Supreme Court reinforced its support for class action waivers, ruling in American Express Co. v. Italian Colors Restaurant that an explicit class action waiver in an arbitration...more

Supreme Court Once Again Upholds Class Arbitration Waiver

On June 20, 2013, the United States Supreme Court issued its decision in American Express Co. v. Italian Colors Restaurant, holding that the Federal Arbitration Act (“FAA”) “does not permit courts to invalidate a contractual...more

Enforceability of Class Action Waivers in Employment Arbitration Agreements Post-Concepcion

Class action waivers in employment agreements have been a point of contention for quite some time. More often than not, courts around the country have found that employment arbitration agreements with class action waivers are...more

Class Action Waivers and the Arbitrability of Antitrust Claims—Charting the Likely Ramifications of AMEX III

I. Introduction - There has been much debate concerning the scope of the Supreme Court’s recent decision in AT&T Mobility LLC v. Concepcion, and the enforcement of collective arbitration waivers — also called “class...more

Waiver Of Right To Arbitrate: To Move or Not to Move: Calculating the Risk Of Waiving the Right to Arbitrate in a Shifting...

The U.S. Supreme Court’s decision in AT&T Mobility LLC v. Concepcion, 131 S. Ct. 1740, 2011 BL 110648, 79 U.S.L.W. 4279 (U.S. 2011), has been characterized as a ‘‘game changer’’ in the arbitration arena. Concepcion overturned...more

Could Arbitration Of Cost-Prohibitive State Law Claims Be Compelled While Similar Federal Claims Stay In Court?

A recent decision from a federal district court in Tennessee raises a discrepancy in how the courts treat arbitration agreements that hinder a plaintiff’s state law and federal law claims. Cases under the FAA state that...more

Wisconsin Auto Title Loans v. Jones: Another Round in the Fight Over Concepcion and Federal Arbitration Act Preemption

Last year, around this time in fact, we wrote about the Federal Arbitration Act and the effect of AT&T Mobility LLC v. Concepcion, 131 S. Ct. 1740 (2011), on an argument under Wisconsin law about the unconscionability of an...more

Arbitration Clauses Are Enforceable Despite Waiver Of Classwide Arbitration Rights

Israel Flores and Andrea Naasz sued West Covina Toyota (WCT) and Toyota Motor Sales for selling them a “lemon,” alleging both individual and class action claims, including claims for violations of the Consumer Legal Remedies...more

Some Class-Action Waiver Clauses Continue to be Held Unenforceable, Even After Concepcion

In a decision dated January 7, 2013, the California Court of Appeal invalidated a mandatory arbitration and class action waiver clause in an automobile sales contract, ruling that the arbitration clause was unconscionable and...more

The Gentry Test On Enforceability Of Class Action Waivers In Arbitration Agreements Remains Good Law In California

Franco v. Arakelian Enterprises, Inc., No. B232583 (Cal. App. 2d, November 26, 2012): In a recent decision by the Second Appellate District of California, the court held that the multifactor test set forth by the California...more

U.S. government takes position on validity of class action waivers in arbitration agreements with CFPB on sidelines (for now)

On January 30, the United States filed an amicus brief in the U.S. Supreme Court supporting the Respondents in American Express Company v. Italian Colors Restaurant, No. 12-133, an extremely important case involving the...more

California Court of Appeal Denies Wage-and-Hour Class Claims and Enforces Arbitration Agreement under Concepcion

Employers in California have been watching closely to see how courts will apply the United States Supreme Court’s decision in AT&T Mobility v. Concepcion, 131 S. Ct. 1740 (2011), which held that the Federal Arbitration Act...more

Class Action Waivers Are Enforceable Despite Any State Statutory Right To A Class Action

In Flores v. West Covina Auto Group, --- Cal.Rptr.3d ----, 2013 WL 139200 (Cal.App. 2 Dist. Jan. 11, 2013), the California Court of Appeal extended the U.S. Supreme Court’s landmark decision in AT&T Mobility, Inc. v....more

Eighth Cicuit: FLSA Does Not Preclude Enforcement of Class Action Waiver

In a significant victory for employers, the Eighth Circuit, in Owen v. Bristol Care Inc., No. 12-1719, overturned a Missouri district court ruling that class action waivers were unenforceable in FLSA cases....more

Legal Alert: Eighth Circuit Requires Arbitration Of FLSA Claim And Rejects Board Decision In D.R. Horton

The Eighth Circuit recently upheld the validity of a mandatory arbitration agreement containing a class action waiver and ordered the arbitration of an employee's collective action under the Fair Labor Standards Act. See...more

The Southern District Sends FLSA Claims To Arbitration

A recent ruling from the Southern District of New York provides further clarification regarding the use of arbitration clauses in employment agreements. On December 4, 2012, District Judge Barbara S. Jones granted UBS AG’s...more

Courts Continue to Wrestle With Arbitration Issues

Decades ago, Congress passed the Federal Arbitration Act to combat the hostility courts showed towards arbitration agreements. Since that time, the Supreme Court has repeatedly pronounced the public policy in favor of the...more

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