News & Analysis as of

Federal Arbitration Act Mandatory Arbitration Clauses

The Federal Arbitration Act is a United States federal statute enacted in 1925 that governs arbitration in contracts implicating interstate commerce. The Act applies in both federal and state courts. 
Mintz

Arbitration Clauses and Class Action Waivers in Residential Leases: Are They Enforceable?

Mintz on

Landlords and property managers are increasingly adding arbitration clauses with class action waivers to their residential leases. These lease provisions can protect landlords from the significant time and costs associated...more

Miles Mediation & Arbitration

Arbitrability of Sexual Harassment and Sexual Discrimination Cases: Litigating in an Alternative Universe

It is generally understood, or at least it has been in the past, that plaintiffs prefer to avoid the application of the Federal Arbitration Act (the “FAA”) and instead present their cases to juries. As such, plaintiffs have...more

ArentFox Schiff

Class Action Year in Review: Labor & Employment - March 2024

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The use of arbitration agreements between employers and employees is a long-standing practice that has become an integral part of employment dispute resolution across the country. Employers often use arbitration agreements...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

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

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

Holland & Knight LLP

The Law on ERISA Plan Arbitration Provisions Remains Unsettled

Holland & Knight LLP on

As previously discussed, courts continue to disagree over the enforceability of mandatory arbitration provisions containing class action waivers set forth in benefit plans governed by the Employee Retirement Income Security...more

Ballard Spahr LLP

Consumer Advocates Petition CFPB to Undertake Rulemaking to Prohibit “Pre-dispute” Consumer Arbitration Clauses

Ballard Spahr LLP on

Earlier last week, a group of consumer advocate organizations filed a Petition for Rulemaking with the CFPB that would prohibit the use of pre-dispute arbitration clauses in consumer contracts in favor of arbitration clauses...more

Proskauer - California Employment Law

Is Arbitration Becoming “Just Somebody That We Used to Know”? — The Beginning of the End of Arbitration

When Congress passed and President Biden signed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (“the Act”) last year, we predicted it was just the beginning of an all-out federal assault on...more

ArentFox Schiff

California Supreme Court Unanimously Decides to Not Follow Viking River

ArentFox Schiff on

In a much-anticipated decision, the California Supreme Court in Adolph v. Uber Technologies unanimously held that a plaintiff, compelled to arbitrate individual claims under the Private Attorneys General Act (PAGA), does not...more

Carlton Fields

South Carolina Supreme Court Finds Contract Did Not Involve Interstate Commerce and Reverses Order Compelling Arbitration

Carlton Fields on

In Hicks Unlimited, Inc. v. UniFirst Corporation, the Supreme Court of South Carolina agreed with a trial court ruling that the underlying contract between the parties, which included mandatory arbitration “to be governed by...more

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

In Big Win for Employers, U.S. Supreme Court Rules Court Proceedings Must Be Stayed During Appeal Over Arbitration

On June 23, 2023, the Supreme Court of the United States held district court proceedings must be put on hold during an appeal on the question of whether claims are subject to arbitration. The ruling is a big win for...more

Weintraub Tobin

California Employment News: The State of Mandatory Arbitration Agreements in California Employment

Weintraub Tobin on

The recent 9th Circuit opinion in US Chamber of Commerce v. Bonta struck down AB 51, determining that it was preempted by the Federal Arbitration Act. Meagan Bainbridge and Lukas Clary review how this decision impacts the use...more

Weintraub Tobin

Podcast: California Employment News - The State of Mandatory Arbitration Agreements in California Employment

Weintraub Tobin on

The recent 9th Circuit opinion in US Chamber of Commerce v. Bonta struck down AB 51, determining that it was preempted by the Federal Arbitration Act. Meagan Bainbridge and Lukas Clary review how this decision impacts the use...more

Obermayer Rebmann Maxwell & Hippel LLP

EFAA Update: Only Plausible #MeToo Claims Can Avoid Arbitration

The Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (the “EFAA”) has been law for just over a year. The bill was signed by President Biden on March 3, 2022, and amended the Federal Arbitration...more

Venable LLP

Ninth Circuit Puts Mandatory Employment Arbitration Agreements Back on the Menu

Venable LLP on

Once again, the California legislature's attempt to kneecap arbitration agreements in the employment arena has been swept aside by a federal court. As of February 15, 2023, California employers may continue to require...more

Ballard Spahr LLP

Southern District of New York Finds Employment Arbitration Agreement Unenforceable

Ballard Spahr LLP on

On February 24, 2023 the United States District Court for the Southern District of New York held that a former employee’s arbitration agreement with his former employer was unenforceable under the Ending Forced Arbitration of...more

McDermott Will & Emery

Ninth Circuit Holds That California AB 51 Is Preempted by the FAA

McDermott Will & Emery on

As of February 15, 2023, employers in California may once again require mandatory arbitration as the US Court of Appeals for the Ninth Circuit held that the Federal Arbitration Act (FAA) preempts Assembly Bill 51 (AB 51), a...more

Perkins Coie

Time To Update Arbitration Agreements—Mandatory Arbitration Is Again Permissible in California

Perkins Coie on

California employers with employees and job applicants subject to the Federal Arbitration Act (FAA) can once again require such individuals to sign arbitration agreements as a condition of employment. On February 15,...more

Greenberg Glusker LLP

One Step Forward For Arbitration Agreements, Two Steps Back For Non-Disparagement Provisions

Greenberg Glusker LLP on

Mandatory Arbitration Agreements for Employees Are “On” Again...for Now. Once upon a time, before a certain virus captured all of our attention, the California legislature enacted Assembly Bill 51 (AB 51), which prohibits...more

ArentFox Schiff

Ninth Circuit’s Reversal Allows Mandatory Employment Arbitration Agreements in California

ArentFox Schiff on

In another reversal of course, the US Ninth Circuit Court of Appeals cleared the way again for California employers to require arbitration agreements. The latest 2-1 decision in Chamber of Commerce v. Bonta, issued on...more

K&L Gates LLP

Ninth Circuit Reversal Saves Employers' Use of Mandatory Arbitration Agreements in California

K&L Gates LLP on

On 15 February 2023, the Ninth Circuit Court of Appeals (Ninth Circuit) struck down California Assembly Bill 51 (AB 51), the state’s anti-arbitration legislation, holding that the Federal Arbitration Act (FAA) “preempts AB 51...more

Davis Wright Tremaine LLP

9th Circuit Strikes California Mandatory Arbitration Ban

On February 15, 2023, a split 9th Circuit panel held that California's ban on mandatory arbitration agreements is preempted by federal law. This closely watched decision allows employers to require employees to enter into...more

Pillsbury Winthrop Shaw Pittman LLP

Federal Court Ends California’s Ban on Mandatory Employment Arbitration Agreements

The Federal Arbitration Act preempts state laws that inhibit parties from entering into arbitration agreements. In Chamber of Commerce v. Bonta, the Ninth Circuit ruled that the Federal Arbitration Act preempts...more

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