Mandatory Arbitration Clauses

News & Analysis as of

Another Benefit of Arbitrating Employment Disputes

One of my least favorite phrases in blogging is “repurposing content.” The verb “repurposing” hurts my ears. You can give something a purpose, but you’re not “purposing” it. And if “purposing” isn’t a verb, how did...more

Louisiana Rejects Arbitration Clause In Contract Of Adhesion

The Supreme Court of Louisiana refuses to send customers who were injured while playing at Sky Zone to arbitration, finding that the arbitration clause “is adhesionary and therefore unenforceable”. Duhon v. Activelaf, LLC,...more

Second Circuit Upholds Refusal To Compel Arbitration Due To Unavailable Forum, Recognizing Split In Federal Circuits

A borrower had previously entered into three payday loan agreements that contained arbitration provisions mandating that all claims be arbitrated in the National Arbitration Forum (NAF), and under the Code of Procedure of the...more

District Court Refuses To Bind Surety To Subcontract Arbitration Clause

An engineering company was hired to perform work in connection with construction and renovation of the South African Embassy, and subcontracted for sheet metal work with a third party. The subcontract contained an arbitration...more

Court Compels Arbitration To Determine The Arbitrability Of Reinsurance Dispute With Captive Insurance Company

In a suit by an auto body company against a captive insurance company for rescission of certain workers compensation reinsurance participation agreements, for disgorgement of $70,000 paid thereunder, and for fraud, breach of...more

Fifth Circuit Affirms Order Compelling Arbitration Against Non-Signatories Based On “Intertwined Claims” Estoppel

A physician sued several healthcare entities for wrongful termination of employment, negligence, breach of contract, and tortious interference with at-will employment. While two of the defendants were signatories to...more

Uber and IC Misclassification in New York: The Other Shoe May Be Dropping

The New York Times today reported that the New York State Department of Labor has found two Uber drivers as eligible for unemployment benefits after having rejected the company’s argument that the drivers are independent...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

Should You Litigate In Court or Arbitrate the Dispute?

Faced with the rising costs of doing business in our increasingly litigious society, today's employers are looking at any way to manage fees and costs associated with resolving disputes over employment decisions. Some of the...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

CMS Issues Final Rule Addressing Improvements in Care, Safety and Consumer Protections for Nursing Home Residents

On September 28, 2016, CMS issued a final rule to improve the care and safety of nursing home residents in long-term care facilities. The new rules are intended to reduce unnecessary hospital readmissions and infections,...more

Employee Benefits Developments - September 2016

Final IRS Regulations Eliminate Requirement to File 83(b) Election with Tax Return - Under Section 83(a) of the Internal Revenue Code (the “Code”), if property is transferred in connection with the performance of...more

SB 1241—What Happens in California Stays in California (Sorry, Vegas)

Seyfarth Synopsis: On September 25 (yes, a Sunday), Governor Brown signed into law Senate Bill 1241. SB 1241, effective January 1, 2017, adds Section 925 to the Labor Code to restrain the ability of employers to require...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

New Arbitration Protections for CA Employees

California’s legislature has passed two new statutes that increase the protections for employees arbitrating workplace disputes. SB 1007, which passed on September 1, 2016, gives any party to arbitration proceedings “the...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

Contractual Clauses That Impact Disputes

In the process of drafting contracts, parties can shape the process for resolving their future disputes. They can potentially select the forum for dispute resolution, the body that will resolve the disputes, the law that will...more

What Federal Contractors with Employee Arbitration Agreements Need to Know Now

Portions of the “Fair Pay and Safe Workplaces” Executive Order (E.O. 13673), often referred to as the “Blacklisting” or “Bad Actors” Executive Order, will take effect on October 25, 2016, and federal contractor employers are...more

To Arbitrate or Not to Arbitrate? Groups Comment on CFPB Proposal

As the deadline for input nears, stakeholders on both sides of the issue filed comments weighing in on the Consumer Financial Protection Bureau’s (CFPB or the Bureau) proposal on 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

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

Employment Law Navigator – Week in Review: September 2016 #2

Last week, as we learned that the CIA has invested in another Big Data analytics startup, new headlines and commentary addressed the dangers of hidden bias in technology. LinkedIn changed its search algorithm after 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

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

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