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
In 2003, the California Supreme Court adopted a stringent test to determine whether an employer had waived its right to compel arbitration of an employee’s claims. The most critical, and often determinative, factor was...more
IN THREE COURT DECISIONS IN THE PAST SEVERAL MONTHS, two themes emerged: reading the contract before you sign and understanding the law that applies. In the first case, a court needed to decide which of two contracts...more
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
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
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
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
Agreements to submit disputes to arbitration are commonplace, with parties attempting to avoid the time, cost, and publicity involved in litigating disputes in court. To facilitate these aims, the Federal Arbitration Act (the...more
On February 10, 2022, the U.S. Senate passed the Ending Force Arbitration of Sexual Assault and Sexual Harassment Act (the “Act”, available here: H.R. 4445). President Biden is expected to sign the bill into law shortly. ...more
In a split 2-1 decision that likely raises more questions than it answers, the Ninth Circuit Court of Appeals cast some doubt upon the ability of employers to implement mandatory arbitration agreements with their employees....more
On March 30, 2020, in The Chemours Company v. DowDuPont Inc., et al., C.A. No. 2019-0351-SG (Del. Ch. Mar. 30, 2020), the Delaware Court of Chancery issued an important decision reaffirming bedrock principles of Delaware...more
Seyfarth Synopsis: Among other things, AB 51 makes it unlawful for employers to impose arbitration agreements on employees as a condition of employment, even if employees are permitted to opt out. AB 51 was quickly challenged...more
As we wrote here, United States District Court Judge Kimberly J. Mueller of the Eastern District of California wrote a brief “minute order” explaining that she was issuing a preliminary injunction to halt enforcement of...more
On February 7, 2020, the U.S. District Court for the Eastern District of California issued an order supporting its injunction of Assembly Bill 51 (AB 51), an expansive anti-arbitration law enacted in October, which was...more
Defendants, Certain Underwriters at Lloyd’s and its third-party claims administrator, CJW & Associates, sought to enforce a mandatory arbitration clause in a Lloyd’s policy issued to the plaintiffs. ...more
Seyfarth Synopsis: After granting a temporary restraining order days before AB 51 was to go into effect, the Eastern District of California granted a motion for a preliminary injunction on January 31, 2020. An order detailing...more
On December 30, 2019, a federal judge in the Eastern District of California entered an order temporarily halting the enforcement of AB 51, California’s new anti-mandatory arbitration law. AB 51, which was set to go into...more
California Governor Gavin Newsom has signed numerous pro-employee bills into law that will impact all Golden State employers starting January 1, 2020. For now, preparation and compliance planning are essential. Employers...more
Last Tuesday, the District Court for the Southern District of California ordered a TCPA case involving Uber Technologies (“Uber”) to arbitration and issued a stay pending the outcome of the arbitration....more
A California Court granted Defendant’s motion to compel arbitration based on a duly formed and consented arbitration clause via a “clickwrap” agreement, despite Plaintiff’s argument that no contract was ever formed because...more
A group of small businesses and their individual owners have filed a putative class action lawsuit in a New York federal district court against online lender Kabbage, Inc. that alleges Kabbage engaged in a “rent-a-charter”...more
On June 26, 2019, Judge Denise Cote, of the Southern District of New York, granted a motion to compel arbitration of an employment discrimination, retaliation and sexual harassment claim—despite recently passed NY law, NY...more
In recent comments, Commissioner Peirce shared her views on the role of the Securities and Exchange Commission in expressing a view regarding mandatory arbitration provisions....more
On September 27, 2018, the Kentucky Supreme Court in Northern Kentucky Area Development District v. Snyder held that the Federal Arbitration Act (FAA) does not preempt a Kentucky statute, KRS § 336.070(2), barring employers...more
On July 1, 2018, California’s revised Automatic Renewal Law (ARL), Cal. Bus. & Prof. Code § 17600 et seq., goes into effect. The updated law requires e-commerce sellers, doing business in California, to allow online...more
Arbitration may end sooner and more efficiently than litigation, but it is slower to begin. A courthouse is just sitting there waiting for a complaint to be filed. Originally published in Alternatives to the High Cost of...more