News & Analysis as of

Employment Contract Arbitration

Kilpatrick

California Supreme Court outlines severance standards for unconscionable contract provisions in arbitration case

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Issues surrounding unconscionability and severance are commonplace in motions to compel arbitration, especially in California. Under California Civil Code section 1670.5, a court has three options when presented with an...more

CDF Labor Law LLP

Implications of Mahram v. The Kroger Co.: A Closer Look at Arbitration Agreements

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In a recent legal dispute, Mahram v. The Kroger Co., a California Court of Appeal delivered a decision that may have implications for employment arbitration agreements. Although the case at hand involved a consumer...more

Ervin Cohen & Jessup LLP

Severing Unconscionable Terms in Employment Arbitration Agreements

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

Parker Poe Adams & Bernstein LLP

Fourth Circuit Nixes Arbitration Agreement at Bottom of Online Application Form

A significant number of employers are opting to elect mandatory arbitration of potential disputes with employees as an alternative to state or federal courts. In some circumstances, arbitration can be quicker than litigation,...more

Ervin Cohen & Jessup LLP

Overbroad Employment Arbitration Agreements Will Not Be Enforced in California

Arbitration agreements, at their core, are contracts. As with any contract, there must be “mutuality” or, more colloquially, a “meeting of the minds” on what the contract is intended to encompass. For this reason, employment...more

Jackson Lewis P.C.

Eighth Circuit Decides When a ‘Dispute’ Arises Under the Ending Forced Arbitration Act

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When a “dispute” arises under the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA) depends on when the specific facts of the case show a “conflict or controversy” exists between the parties, the...more

CDF Labor Law LLP

CA Supreme Court: No Three-Strikes Rule For Enforcement of Arbitration Agreements

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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

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

California Appeals Court Finds Employer’s Arbitration Agreement With Cost-Sharing and Out-of-State Law Provisions Unconscionable

In a recent ruling, a California appeals court found an arbitration agreement with an eyewear store employee that was presented on a take-it-or-leave-it basis required an arbitrator to apply the laws of another state,...more

CDF Labor Law LLP

Importance of FAA in California Employment Arbitration Agreements Underscored

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Employers may be able to breathe a sigh of relief as a California Court of Appeal concluded that the Federal Arbitration Act (“FAA”) preempts state law that allowed employees to wriggle out of arbitration and win thousands of...more

Epstein Becker & Green

#WorkforceWednesday: Avoiding Legal Illusions - Crafting Effective Arbitration Agreements - Employment Law This Week®

This week, we’re diving into arbitration agreements and learning some best practices for employers when crafting these agreements: Employers often include arbitration agreements in their onboarding and other employee...more

Littler

Ninth Circuit: “Transportation Exemption” Does Not Apply to Arbitration Clauses Between Corporate Entities or in Commercial...

Littler on

Two days before the United States Supreme Court ruled in Bissonnette v. LePage Bakeries Park St., LLC, that the Federal Arbitration Act’s (FAA) transportation worker exemption (meaning the FAA would not apply) extends beyond...more

Holland & Knight LLP

U.S. Supreme Court: Workers Who Transport Goods Are Exempt from FAA, Regardless of Industry

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The U.S. Supreme Court on April 12, 2024, decided Bissonnette v. LePage Bakeries Park St., LLC. The central issue revolved around the Federal Arbitration Act (FAA) and its applicability to workers engaged in interstate...more

Goldberg Segalla

New Jersey Update: Choice of Law Provisions and Arbitration Agreements in Employment Contracts

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On February 26, 2024, the Appellate Division of the Superior Court of New Jersey affirmed the trial court’s decision in Aguirre v. CDL Last Mile Solutions, denying defendant CDL Last Mile’s motion to compel arbitration....more

Carlton Fields

Ninth Circuit Compels Arbitration of Plaintiff’s Individual Labor Claims Under PAGA, Remands Non-Individual Claims

Carlton Fields on

In Johnson v. Lowe’s Home Centers LLC, the Ninth Circuit Court of Appeals affirmed a district court order granting defendant Lowe’s motion to compel arbitration of plaintiff Maria Johnson’s individual claims brought under...more

Carlton Fields

New Jersey Supreme Court Reinstates Arbitrator’s Decision Demoting School Official

Carlton Fields on

Under New Jersey’s Tenure Employees Hearing Law, when a school district files tenure charges against an employee, the state commissioner of education must refer the case to arbitration if he or she determines that the charges...more

Holland & Knight LLP

U.S. Supreme Court Hears Argument on Arbitration Exemption for Food Delivery Drivers

Holland & Knight LLP on

The U.S. Supreme Court heard oral argument on Feb. 20, 2024, on whether food distributors are exempt from arbitration under Section 1 of the Federal Arbitration Act (FAA), governing "contracts of employment of seamen,...more

Fox Rothschild LLP

Mandatory Arbitration Agreements Are Ok

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After four long years of litigation, AB 51, intended to prohibit mandatory arbitration agreements, has been permanently enjoined. California companies may rejoice in a rare win allowing enforceable arbitration agreements to...more

Epstein Becker & Green

The Enforceability of Employees’ Electronic Signatures Is the Next Battleground for Arbitration Agreements With Class Action...

Epstein Becker & Green on

Here’s a question you likely have never considered: Are hackers overseas infiltrating employers’ computer systems just to sign arbitration agreements with class action waivers for random employees?...more

BakerHostetler

At Long Last, California District Court Permanently Enjoins Enforcement of AB 51

BakerHostetler on

There are times when one would rather not be proven right. Nearly four years ago, a California district court invalidated AB 51, which sought to prohibit mandatory arbitration by, among other things, calling for criminal...more

Foley & Lardner LLP

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

Foley & Lardner LLP on

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

CDF Labor Law LLP

Failure to Disclose Arbitration Agreement In Visa Petition May Nullify Agreement

CDF Labor Law LLP on

In early 2020, Alco Harvesting, LLC hired Jesus Guzman, a citizen of Mexico, to perform agricultural work in Santa Maria under the H-2A visa program. The H-2A visa program allows employers to hire foreign nationals to engage...more

Genova Burns LLC

Ending Forced Arbitration of Sexual Harassment, Not Discrimination

Genova Burns LLC on

Arbitration agreements are a powerful tool used by many employers to compel the utilization of arbitration as a means of alternative dispute resolution. Arbitration allows the parties of a claim to resolve the dispute...more

Davis Wright Tremaine LLP

California's New Employment Laws: Get Ready for 2024

Governor Newsom signed into law a plethora of bills that significantly expand the rights of employees in California, although notably vetoing a bill that would have prohibited caste discrimination. Most of the new laws take...more

Perkins Coie

2023 California Labor, Employment, and Independent Contractor Legislative Update

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With the 2023 California legislative year closed, it is once again time to summarize the new legislation that will affect businesses operating within the state and highlight relevant action items related to these bills. Below...more

Carlton Fields

Eleventh Circuit Affirms Order Compelling Arbitration of Discrimination Claims, Rejects Argument That Arbitration Agreement Was...

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In Payne v. Savannah College of Art and Design Inc., the Eleventh Circuit Court of Appeals affirmed a district court order denying a motion to compel arbitration of plaintiff Isaac Payne’s discrimination-based claims. The...more

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