California Employment News: The State of Mandatory Arbitration Agreements in California Employment
Podcast: California Employment News - The State of Mandatory Arbitration Agreements in California Employment
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Arbitration Clauses in Employee Contracts and Beyond
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
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
Suspense builds as the end of the Michigan Supreme Court’s 2023-2024 term approaches quickly, with scores of argued appeals still unresolved. The 40 appeals that remain undecided reveal interesting trends in the court’s...more
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
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
Arbitration agreements are useful tools for California employers, but they are replete with potential dangers. An employer contemplating using arbitration in the workplace must evaluate whether it should be mandatory, the...more
Despite its best efforts, the California Legislature has been unable to substantially curtail the popularity of employment arbitrations in California. The hostility to employment arbitration remains evident, however, among...more
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
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
Over the past few years, this blog has followed the California Legislature’s concerted efforts to vitiate employment arbitrations in the state. Senate Bill 365 is the next in line....more
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
In Munoz, v. Earthgrains Distribution, LLC, 2023 WL 5986129 (S.D. Cal. Sept. 13, 2023), the plaintiffs, members of a class of independent distributors of baked goods for Earthgrains and other bakeries, alleged that they were...more
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
Avid readers of Stokes Wagner’s legal updates may be familiar with California’s Assembly Bill 51, a law that, until very recently, prohibited California employers from requiring employees or job applicants to sign arbitration...more
On February 15, 2023, the Ninth Circuit Court of Appeals blocked a 2020 California law that attempted to prohibit employers from requiring employees and job applicants to agree to arbitration as a condition of employment. The...more
On October 26, 2022, the New Jersey Appellate Division in Rourke v. Herr Foods, Inc. once again confirmed that the Federal Arbitration Act (FAA) preempts the 2019 amendment to the New Jersey Law Against Discrimination (NJLAD)...more
Historically, courts around the country have approached the enforceability of class action waivers and arbitration provisions in ESOP and Employee Retirement Income Security Act of 1974 (ERISA) plan documents differently,...more
The panel of the Ninth Circuit Court of Appeals that largely upheld California’s law banning mandatory arbitration agreements in the employment context just withdrew its decision. On August 22, 2022, two of the three...more
Last month, the United States Court of Appeals for the Second Circuit found that an employee’s sworn statement that she never electronically signed (or even saw) an arbitration agreement during the onboarding process were,...more
In Mankin Media Systems, Inv. v. Timothy Crowder, No. 19CV-48300W (Jun. 30, 2022), the Court of Appeals of Tennessee reversed the confirmation of an arbitration award because the so-called arbitration clause appeared in the...more
If you have an arbitration agreement, do you have to compel arbitration when the lawsuit is filed or can you wait awhile? This week, the Supreme Court concluded that a party litigating in federal court cannot later compel...more
In Hawkins, et al. v. Cintas Corp., No. 21-3156, __ F.4d __ (2022), plaintiffs brought a class action pursuant to Section 502(a)(2) of the Employee Retirement Income Security Act (ERISA), alleging that their former employer...more
Some employers use mandatory arbitration agreements with employees, intended to have disputes heard through private arbitration instead of the court system. Earlier this week, the Fourth Circuit Court of Appeals (which...more
On March 3, 2022, President Biden signed into law the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (the Act), which amends the Federal Arbitration Act (the FAA) and prohibits employers from requiring...more
On March 3, 2022, President Biden signed into law the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021, limiting the use of mandatory employment arbitration agreements. Until now, under the...more