News & Analysis as of

For Its 2016-2017 Term, Supreme Court Takes A Cautious Approach, With Few Blockbuster Labor and Employment Cases

Last week, the U.S. Supreme Court began its first full term since the death of Justice Antonin Scalia, the central advocate for the Court’s conservative bloc. Since Justice Scalia’s death this past February, the Court has...more

Opt-Out Clauses May Help Some Employers Opt In To Individual Arbitration

Ironically, giving employees the right to decline to resolve their employment claims in binding arbitration may actually help employers enforce arbitration agreements in some parts of the country....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

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

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

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

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

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 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

Employment Alert: Ninth Circuit Nixes Employee Class and Collective Action Waivers, Calling into Question Future Viability of...

Mandatory employment arbitration agreements suffered a significant blow last week, when the U.S. Court of Appeals for the Ninth Circuit (covering California, Washington, and other western states) found illegal and...more

The Curious Case of Employment Arbitration Agreements

Oh boy, what a year 2016 is shaping up to be! Employers faced some daunting changes to: Sick Leave, California Minimum Wage, the DOL final rule re salary thresholds and now – class action waivers. We feel like doing a Liz...more

Ninth Circuit Strikes Down Class Action Waivers In Employment Arbitration Agreements

On August 22, 2016, the U.S. Court of Appeals for the 9th Circuit (which covers California) struck down a "concerted action waiver" (i.e., a waiver of class, collective or other group actions) in an arbitration agreement....more

Ninth Circuit Invalidates Arbitration Agreement with Class Action Waiver

On August 22, 2016, the Ninth Circuit joined the Seventh Circuit in the split amongst U.S. Circuit Courts of Appeal on the issue of enforceability of employment arbitration agreements precluding class actions. The Ninth...more

Ninth Circuit Holds Class Action Waivers Are Unenforceable

In a strong blow to employers, the Ninth Circuit Court of Appeals recently released its opinion in Stephen Morris, et al. v. Ernst & Young, et al., No. 13-16599, D.C. No. 5:12-cv-04964-RMW (August 22, 2016), holding that...more

Ninth Circuit, California Appellate Court Take Aim at Arbitration Agreements

The Ninth Circuit and the California Court of Appeal have each issued decisions that may fundamentally affect how employers deal with arbitration agreements in the future. In Morris v. Ernst & Young, the Ninth Circuit held...more

Ninth Circuit Sides with NLRB in Divide over Employee Arbitration Waiver Agreements

The U.S. Court of Appeals for the Ninth Circuit announced this week that it agrees with the National Labor Relations Board that individual arbitration waiver agreements, which prevent employees from filing or participating in...more

Divide Deepens Over Enforceability of Class Arbitration Waivers

The U.S. Court of Appeals for the Ninth Circuit (covering California and eight other western states) on Monday joined the Seventh Circuit, and disagreed with the Fifth Circuit, in rejecting a mandatory employment arbitration...more

And Now There Are Two: The Ninth Circuit Strikes Class Arbitration Waivers Joining the Seventh Circuit on Finding that these...

Seyfarth Synopsis: The Ninth Circuit joined the Seventh Circuit and the NLRB in finding that mandatory arbitration agreements that require all claims to be brought by employees on an individual basis violate the NLRA. On...more

Ninth Circuit Holds that Arbitration Provision Prohibiting Concerted Actions Violates the National Labor Relations Act and is...

In Morris v. Ernst & Young, LLP (hereinafter “Morris”), the Ninth Circuit held that an arbitration provision prohibiting the filing of concerted actions, signed as a condition of employment, violated the National Labor...more

Ninth Circuit Finds Arbitration Agreement That Required Employees to Bring Claims in “Separate Proceedings” Illegal Under the NLRA

On August 22, 2016, in Morris et al. v. Ernst & Young, LLP, a panel of the U.S. Court of Appeals for the Ninth Circuit followed the lead of the National Labor Relations Board (“NLRB”) and the U.S Court of Appeals for the...more

Eighth Circuit Rules That NLRB Erred By Invalidating Employment Agreements Requiring Individual Arbitration

We previously reported on a federal circuit split that has developed over the enforceability of arbitration provisions waiving class actions in employment agreements. Compare December 19, 2013 (D. R. Horton) and November 9,...more

Seventh Circuit Voids Employee Promises to Not Pursue Wage and Hour Claims as Members of a Class or Collective Action

Many employers will be surprised to learn that, under some circumstances, the National Labor Relations Act (NLRA) may regulate their ability to enter into certain contractual agreements with employees. The decision of the...more

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