In yet another split 5-4 decision, the U.S. Supreme Court ruled in Lamps Plus v. Varela that employees at a California business could not band together in a class-wide arbitration. Instead, the Supreme Court ruled, each employee was required to proceed independently in an individual arbitration. The Supreme Court acknowledged that the arbitration agreement that… Read More
Posts Categorized In: Alternate Dispute Resolution (ADR)
An Employee’s Single PAGA Claim Cannot Be Split into Arbitration and Litigation Pieces
Back in 2014, the California Supreme Court ruled in Iskanian v. CLS Transportation Los Angeles that an individual employee who has signed a mandatory arbitration agreement may be compelled to arbitrate his “individual damages claims.” However, if that employee joins a representative PAGA claim to his other damages claims, that PAGA claim cannot be sent to arbitration… Read More
U.S. Supreme Court Agrees to Determine Legality of Class Action Waivers in Employee Arbitration Agreements
Yesterday, the U.S. Supreme Court agreed to decide whether class action waivers in employee arbitration agreements violate federal law. This is a huge development, with potentially far-reaching implications for many California employers. But, first, a little background (okay, actually it’s a lot of background, but it’s important) — Advantages of Arbitration Many employers require their… Read More
California Employers Cannot Force Employees to Litigate or Arbitrate in Another State
California employment laws are some of the most pro-employee laws in the nation. That’s why so many large California employers, and their clever legal counsel, often try to get California employees to sign employment agreements that prohibit the employee from suing in this state (forcing them, instead, to have to sue in some other state… Read More
Governor Brown Signs SB 1007 Allowing Parties in Arbitration to Request Reporters for Hearings and Depositions
Last week, Governor Brown Signed SB 1007, which gives the parties to an arbitration “the right to have a certified shorthand reporter transcribe any deposition, proceeding, or hearing as the official record.” This new law requires the party who wants to the reporter make his/her/its request in a “demand, response, answer, or counterclaim related to… Read More
California Legislature Approves AB 465 — Future of Employment Arbitration Agreements in Doubt in California
Recently, the California Legislature passed AB 465 which prevents employers from requiring employees to sign mandatory pre-employment arbitration agreements as a condition of employment. This bill, which is now sitting on Governor Brown’s desk awaiting his signature, adds a new provision of the California Labor Code making it illegal to: “Require another person to waive… Read More
CA Legislature Passes AB 465 Abolishing Arbitration Agreements
The California Senate and Assembly recently passed AB 465 which prevents employers from asking employees to sign a mandatory arbitration agreement as a condition of employment. This new bill, which is now on Governor Brown’s desk, would add a new provision to the California Labor Code that would make it illegal to: “Require another person… Read More
Governor Brown Signs AB 2617, Further Restricting Arbitration in California
On September 30, 2014, California Governor Jerry Brown signed AB 2617. This new law prohibits mandatory, pre-dispute arbitration agreements in contracts for goods and services, to the extent the agreement purports to waive rights provided by California Civil Code 51.7 (the “Ralph Civil Rights Act”) and/or 52.1 (the “Bane Civil Rights Act”). No person can… Read More
Governor Brown Signs AB 802 Requiring Arbitration Companies to Disclose Private Arbitration Stats
On September 30, 2014, California Governor Jerry Brown signed AB 802. Under this new law, which takes effect on January 1, 2015, private arbitration companies (e.g., AAA, JAMS) will be required to collect and publish certain information about private arbitrations they administer. The previously private information which must now be made publicly available includes: 1…. Read More
CA Supreme Court Upholds Class Action Waivers
In 2007, the California Supreme Court ruled in Gentry v. Superior Court that class action waivers in employment arbitration agreements are invalid under certain circumstances. Four years later, however, the United States Supreme Court reached a seemingly opposite conclusion in AT&T Mobility LLC v. Concepcion, holding that “requiring the availability of classwide arbitration interferes with fundamental… Read More
