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
The Sixth Circuit Court of Appeals recently reversed a Michigan District Court’s grant of a motion to compel arbitration and dismissal in an unpublished decision Fleming v. Kellogg Company et al., No. 23-1966....more
Once is legally interesting, twice is a trend, and three times is a message. In the last seven years, at least three federal appeals courts (two very recently) have held, following an arbitration ordered by a district court,...more
Bryan Dick-Ipsen v. Humphrey, Farrington & McClain, P.C., et al., 2024 IL App (1st) 241043 - Brief Summary - The First District Appellate Court in Illinois affirmed the trial court's denial of a defendant law firm's motion to...more
In October 2023, a New York medical doctor sat down for a fateful meal with her husband and her mother-in-law at a Florida restaurant owned by the adjacent theme park. The doctor, who suffered from severe nut and dairy...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
Online retailers routinely include arbitration clauses in the terms of service for their website, seeking to send any consumer claims to arbitration and to eliminate a consumer’s right to file a class action lawsuit....more
A state appellate court in California reversed a superior court’s denial of a massage franchisor’s motion to compel arbitration. Jane Doe #1 (I.G.) v. Massage Envy Franchising, LLC, 2023 WL 8801517 (Cal. Ct. App. Dec. 20,...more
Parents of ball player will get their day in court. Ryan Costello was a promising young baseball player. After being drafted in the 31st round of the 2017 Major League Baseball Draft by the Seattle Mariners, and later...more
This past Friday, the Second Circuit reversed a lower court’s denial of a motion to compel arbitration in a putative consumer class action against fintech company Klarna. Edmundson v. Klarna, Inc., Case No. 22-557-cv (2d...more
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
New York statutes classify certain civil service positions as exempt where such positions are confidential in nature and require personal qualities that cannot practicably be tested by an examination. These positions are...more
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
The Ninth Circuit has never been shy about declining to compel arbitration, and the Court has issued multiple cases outlining what constitutes sufficient notice of certain provisions in consumer-facing terms and conditions,...more
The Fifth Circuit affirmed judgments confirming an arbitration award despite concluding that the lower courts should have considered one of the party’s claims that a dispute decided by the arbitrator was beyond the scope of...more
An order that denies a motion to compel arbitration, although interlocutory, can be appealed right away. Such rulings involve a substantial right that might be lost if appeal is delayed. But in JRM, Inc. v. HJM Cos., Inc.,...more
The Pennsylvania Superior Court recently invalidated Uber’s use of a mandatory arbitration clause in an online registration page for customers, ruling that the arbitration clause was unenforceable because it did not clearly...more
In Bain v. Airoom, LLC, No. 1-21-001, 2022 Ill. App. LEXIS 241, the Appellate Court of Illinois (Appellate Court) considered whether the lower court erred in enforcing an arbitration clause in a construction contract between...more
As litigation costs continue to explode, more and more businesses have been including arbitration clauses in contracts with employees and customers. These clauses, which frequently include class action waivers, allow...more
On May 26, 2022, the Eleventh Circuit issued an opinion reversing the Southern District of Florida’s denial of the appellant’s motion to compel arbitration, therein finding that the district court erred in failing to apply...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 a unanimous decision authored by Justice Elena Kagan, the US Supreme Court ruled that in determining whether a party has waived its right to enforce an arbitration agreement, the party asserting waiver does not have to...more
In Morgan v. Sundance, the Supreme Court unanimously concluded this week that waiving arbitration rights does not require a showing that the party seeking to have their case heard in federal court would be prejudiced by...more
The Federal Arbitration Act establishes a federal policy in favor of arbitration agreements and provides for enforcement in federal court of many agreements to arbitrate. 9 USC §§ 1, 4. Section 16(b) of the Arbitration Act...more
Arbitration agreements are intended to expedite the legal process while minimizing fees and costs. In reality, former employees and their counsel often resist submitting their employment claims to arbitration, resulting in...more