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Update and Discussion on Legal and Practical Issues
In August 2000, the California Supreme Court handed down a landmark ruling that changed the face of employment arbitration agreements going forward. That case, known as Armendariz v. Foundation Health Psychcare Services,...more
On July 15, 2024, the Supreme Court of California issued a decision that could provide courts in the state with significant discretion to refuse to enforce employment arbitration agreements even if only one term is determined...more
In a recent decision, the California Supreme Court held that courts cannot refuse to enforce arbitration agreements simply by finding that three or more provisions are unconscionable. Rather, courts must use a three-prong...more
On June 8, 2020, the U.S. Supreme Court denied the employer’s petition for certiorari in OTO, LLC v. Kho. As background, in 2019, the California Supreme Court ruled in OTO that the arbitration agreement at issue was not...more
OTO, L.L.C. v. Kho, 8 Cal. 5th 111, 251 Cal. Rptr. 3d 714 (2019) - Summary: Mandatory arbitration agreement may be unenforceable against employee wage claims if agreement requires employee to forego Labor Commissioner...more
The U.S. Supreme Court just did something that was more than just a bit out of character—it rejected the opportunity to find that California had once again overstepped its bounds by creating judicial rules disfavoring...more
The California Supreme Court recently handed down an intriguing decision which casts doubt on – and in some cases even condemns – some of the most common practices used by employers in both drafting and presenting arbitration...more
California Supreme Court Invalidates Agreement To Arbitrate Wage Disputes - OTO, LLC v. Kho, 2019 WL 4065524 (Cal. S. Ct. 2019) - In the most recent chapter of the ongoing saga regarding the enforceability of...more
“Unconscionability” is alive and well, as last week the California high Court renewed its 30-year running dog fight with the U.S. Supreme Court over the enforceability of arbitration agreements. In One Toyota of Oakland v....more
Seyfarth Synopsis: The California Supreme Court invalidated an employment arbitration agreement on August 29, 2019. At issue in OTO, LLC v. Kho was an agreement to arbitrate employment claims, including wage claims. Under the...more
On August 29, 2019, the California Supreme Court held in OTO, L.L.C. v. Kho, S244630, that a mandatory arbitration agreement may be unenforceable against employee wage claims if it requires the employee to forego the “Berman”...more
On Monday, March 28, 2016, the California Supreme Court affirmed the decision of the Second Appellate District holding that an arbitration agreement in an employment contract is not substantively unconscionable simply because...more
On March 28, 2016, the California Supreme Court handed down a long-awaited opinion in Baltazar v. Forever 21. Baltazar’s most important holding is that an arbitration agreement is not unconscionable merely because it restates...more
On March 28, 2016, the Supreme Court of California issued another ruling on the enforceability of arbitration agreements. In Baltazar v. Forever 21, Inc. (S208345), the court considered the enforceability of an arbitration...more
In a dispute over the purchase of a car, the purchaser filed a class action in California against the car dealer, and the dealer moved to compel arbitration. The dealer invoked the arbitration agreement contained in the...more
Many companies doing business in California have had difficulty persuading California courts to enforce their arbitration agreements. Those courts often have used the doctrine of unconscionability to deny enforcement on the...more