Class Action Arbitration Agreements

A class action is a type of legal action where a representative individual or group of individuals can bring a claim on behalf of a larger group or class who share a common legal interest.
News & Analysis as of

California Court of Appeal Reinforces Prior Holdings and Allows Employer to Enforce Arbitration Award in Contract of Adhesion

In Da Loc Nguyen v. Applied Medical Resources, No. G057702 (Cal. Ct. App. October 14, 2016) (hereinafter “Nguyen”), the California Court of Appeal upheld a ruling compelling arbitration of plaintiff’s individual claims...more

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

Week in Review: Lots of Action in “Natural” Product-Labeling Class Litigation

This week we take a look at a couple major recent decisions in product-labeling class actions, as well as a close call the Supreme Court will not be deciding this term. Ninth Circuit Rejects Class Counsel’s Damages...more

Agree to Arbitrate Representative Issues Much?

Seyfarth Synopsis: When the California Supreme Court said no to PAGA waivers in its 2014 Iskanian ruling, we asked whether employers would boldly go where few have gone before and implement arbitration agreements requiring...more

Divided Third Circuit Panel Holds That Waiver Of Arbitration Clause Does Not Apply To Futile Arguments

On July 13, 2016, a U.S. Court of Appeals for the Third Circuit panel held that an arbitration clause is not waived simply because a party failed to raise a futile argument. The case arose out of a putative class action...more

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

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

Uber Victory in Ninth Circuit Regarding Dispute Over Enforceability of Arbitration

The United States Court of Appeals for the Ninth Circuit (the “Ninth Circuit”) recently ruled that the majority of Uber’s contract drivers must resolve their disputes through individual arbitration and cannot pursue their...more

CFPB Allies and Opponents Clash Over Arbitration Proposal

The CFPB's recently-announced proposal to limit arbitration clauses in consumer finance contracts has drawn thousands of comments from groups and individuals on both sides of this issue. The deadline for submitting comments...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

Uber Enforces Arbitration Due To Delegation Clause And Opt Out

The 9th Circuit’s decision to enforce the arbitration agreement in Uber’s agreements with drivers made lots of news last week.  And although it includes no new principles of law, it does emphasize some principles that come up...more

Uber Wins Another Round: Ninth Circuit Holds Arbitration Agreements With Drivers To Be Valid And Enforceable

In Mohamed v. Uber Technologies (9th Cir. 15-16178), published September 7, 2016, a three judge panel of the Ninth Circuit upheld Uber’s mandatory arbitration provisions in the contracts signed by its drivers. In its ruling,...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

The Big Uber Arbitration Win, As Explained By 3 Fisher Phillips Lawyers

A few days ago, Uber won a significant battle when the 9th Circuit Court of Appeals overturned a lower court’s decision and upheld the company’s arbitration agreements. No doubt about it, this is a big win. You might remember...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

Class Action Arbitration after Dell Webb

Agreeing to arbitrate disputes, in lieu of traditional litigation, is not a new phenomenon. As consumers, we all contractually agree to arbitrate disputes on an almost daily basis. While not everyone may read the entire...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

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

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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