News & Analysis as of

Class Action Arbitration Waivers Federal Arbitration Act

Carlton Fields

Second Circuit Rejects Enforcement of Class Waiver and Arbitration Agreement Under FAA, Finds That Provisions Impermissibly...

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The plaintiff sued the trustee of his retirement plan, his former employer, and others for breach of fiduciary duties in connection with the plan’s purchase of shares of the employer’s parent company for more than fair market...more

Mintz

Arbitration Clauses and Class Action Waivers in Residential Leases: Are They Enforceable?

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Landlords and property managers are increasingly adding arbitration clauses with class action waivers to their residential leases. These lease provisions can protect landlords from the significant time and costs associated...more

Mayer Brown

Consumer Arbitration in the US

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Join us for the latest episode of Financial Services Focus as Andy Demko and Archis Parasharami discuss how consumer arbitration became popular among U.S. businesses in response to class actions from the late 90s onward. The...more

Seyfarth Shaw LLP

Second Circuit Holds that Plan Arbitration Provisions that Force Plaintiff to Surrender Statutory Right To Plan-Wide Relief Are...

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The Second Circuit recently ruled that an ERISA plan’s arbitration provision was not enforceable because the provision barred plan-wide relief. Cedeno v. Sasson, 2024 WL 1895053 (2d Cir. May 1, 2024). The Court decision...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Recent Court Rulings on FAA’s Transportation Worker Exemption May Require Employers to Update Their Arbitration Agreements

The U.S. Department of Labor estimates 56 percent of all nonunion private-sector employees are subject to mandatory arbitration agreements. Many employers use such agreements—and the class action waivers contained therein—to...more

Foley & Lardner LLP

Ongoing Battles Remind Employers to Carefully Consider Their Approach to Arbitration Agreements

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Hop into the time machine with me so I can take a quick victory lap before I revert to being the ever-cautious counselor. Way back in October 2019, I not-so-subtly indicated my belief that a California statute banning...more

Holland & Knight LLP

The Law on ERISA Plan Arbitration Provisions Remains Unsettled

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As previously discussed, courts continue to disagree over the enforceability of mandatory arbitration provisions containing class action waivers set forth in benefit plans governed by the Employee Retirement Income Security...more

Ballard Spahr LLP

Rhode Island federal court nixes stand-alone class action waiver

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A Rhode Island federal district court recently refused to enforce a stand-alone class action waiver in the consumer plaintiff’s automobile lease agreement on the ground that it violates state public policy. The court in...more

Kilpatrick

Supreme Court declines to clarify enforceability of mandatory arbitration provisions for fiduciary breach claims

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Are mandatory arbitration provisions with class action waivers a solution to the onslaught of class action litigation against 401(k) plans in recent years? Some courts have enforced mandatory arbitration provisions in ERISA...more

Ballard Spahr LLP

Consumer Advocates Petition CFPB to Undertake Rulemaking to Prohibit “Pre-dispute” Consumer Arbitration Clauses

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Earlier last week, a group of consumer advocate organizations filed a Petition for Rulemaking with the CFPB that would prohibit the use of pre-dispute arbitration clauses in consumer contracts in favor of arbitration clauses...more

Ballard Spahr LLP

California federal court denies arbitration motion in Ticketmaster case

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We previously wrote about a Ninth Circuit appeal dealing with the use of bellwether procedures to resolve mass arbitration claims brought by thousands of customers against Verizon Wireless. That appeal remains pending and is...more

Manatt, Phelps & Phillips, LLP

FAA Preempts AB 51, Ninth Circuit Holds

The battle over arbitration in California continues, with a divided panel of the Ninth U.S. Circuit Court of Appeals ruling that the Federal Arbitration Act (FAA) preempts the state’s Assembly Bill 51, a law that prohibits...more

Greenberg Glusker LLP

One Step Forward For Arbitration Agreements, Two Steps Back For Non-Disparagement Provisions

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Mandatory Arbitration Agreements for Employees Are “On” Again...for Now. Once upon a time, before a certain virus captured all of our attention, the California legislature enacted Assembly Bill 51 (AB 51), which prohibits...more

BakerHostetler

A Recent DoorDash Opinion Addresses Several Pivotal Arbitration Issues

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Two DoorDash delivery drivers filed a class action against the company and two of its employees alleging violations of federal and state wage and hour laws. After removal of the case to the Southern District of New York, the...more

Fisher Phillips

Does Your Dealership Arbitrate? Recent Developments in Workplace Arbitration Agreements

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Employers – and, in particular, car dealerships – have relied on binding arbitration agreements to resolve employment disputes for decades. Arbitration offers a confidential setting in which businesses can efficiently...more

Butler Snow LLP

The Supreme Court Again Affirms Party Autonomy, in Arbitration Agreements, Holds FAA Preempts State Law Rules Preventing Division...

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In Viking River Cruises, Inc. v. Moriana, 213 L. Ed. 2d 179, 142 S. Ct. 1906 (2022), reh’g denied, No. 20-1573, 2022 WL 3580311 (U.S. Aug. 22, 2022), the Supreme Court held that the Federal Arbitration Act, 9 U.S.C. § 1 et...more

Miller Nash LLP

Washington Court of Appeals Voids Class Action Waivers in Some Wage and Hour Claims

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In a recently published decision, the Washington Court of Appeals declared class action waivers in certain employment agreements unenforceable. In Oakley v. Domino’s Pizza, LLC, plaintiff Oakley brought claims under the...more

Fisher Phillips

Massachusetts High Court Says Grubhub Delivery Drivers Must Arbitrate Claims

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The Massachusetts Supreme Judicial Court (SJC) held yesterday that local Grubhub delivery drivers are not exempt from the Federal Arbitration Act (FAA), and those workers can be compelled to individually arbitrate their...more

CDF Labor Law LLP

CA Court of Appeal Upholds Arbitration Agreement Under FAA Preemption

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Evenskaas v. California Transit Inc. reversed a Los Angeles Superior Court judge’s denial of an employer’s motion to compel arbitration of a former employee’s wage and hour class action. The trial court had concluded that the...more

Stinson LLP

Missouri Supreme Court Holds Consumer Arbitration Agreements Enforceable

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On Tuesday, July 12, 2022, the Missouri Supreme Court issued a unanimous opinion in Bridgecrest Acceptance Corporation v. Kelly Donaldson and Robert Haulcy, No. SC99269 and Bridgecrest Acceptance Corporation v. Christopher...more

Amundsen Davis LLC

Use It or Lose It: Supreme Court Says Arbitration Clauses Can Be Waived Inadvertently

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As litigation costs continue to explode, more and more businesses have been including arbitration clauses in contracts with employees and customers. These clauses, which frequently include class action waivers, allow...more

Jones Day

Supreme Court Upholds Representative Action Waivers In Employee Arbitration Agreements

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Case Overview - On June 15, 2022, the United States Supreme Court issued its decision in Viking River Cruises, Inc. v. Moriana, No. 20-1573. The Court held that the rule from Iskanian v. CLS Transportation Los Angeles,...more

Jackson Lewis P.C.

Class Action Trends Report June 2022

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In this issue of the Class Action Trends Report, Jackson Lewis attorneys discuss recent developments in arbitration and their impact on employment class actions. These include the Ending Forced Arbitration of Sexual Assault...more

Proskauer - California Employment Law

The U.S. Supreme Court Says PAGA Representative Action Waivers Are Enforceable After All

On June 15, 2022, in Viking River Cruises, Inc. v. Moriana, Case No. 20-1573,_ U.S. _ (2022), by an 8-1 majority, the U.S. States Supreme Court held that the Federal Arbitration Act (“FAA”) preempts the California Supreme...more

Epstein Becker & Green

#WorkforceWednesday: SCOTUS Rules on PAGA, Fifth Circuit Rules on COVID-19 Under WARN, Illinois Expands Bereavement Leave -...

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This week, we look at two significant court decisions for employers and bring you a practical update on new bereavement leave rules in Illinois. SCOTUS: FAA Preempts California’s PAGA Loophole Last week, the U.S. Supreme...more

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