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: Employment Agreements
One Day, Two Opposite Results in Arbitration Cases
On the same day, two different California appellate courts reached opposite conclusions as to whether an employer’s arbitration agreement was enforceable or not. Subcontracting Concepts v. DeMelo — Arbitration Agreement Void and Unenforceable In one case, Subcontracting Concepts, LLC v. DeMelo, the Court found that the arbitration agreement was both procedurally and substantively unconscionable and, therefore, unenforceable…. Read More
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
2019 Brings New Laws and Obligations for California Employers
Last year was a busy legislative year in California. The #MeToo and #TimesUp movements in particular spawned a host of new employment laws that took effect on January 1st. If you haven’t done so already, you should review your employee handbook and personnel policies to make sure that you are in compliance with these new laws. SB… Read More
The Workplace Impact of Legal Marijuana in California
Many Californians celebrated the arrival of 2018 standing for hours in long lines at their local pot dispensary. That’s because the 2016 law legalizing recreational marijuana in California — known as Proposition 64 or the Adult Use of Marijuana Act (AUMA) — officially became effective on January 1, 2018. On that date, residents of municipalities… 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
CA Supreme Court: Employees Must Be Relieved of All Duties During Rest Breaks
Yesterday, the California Supreme Court ruled in Augustus v. ABM Security Services, Inc. that employers must relieve employees of all work duties during their 10-minute rest breaks. This landmark decision now means that employers must treat rest breaks and meal breaks the same — and that employers must relinquish all control over employees during both… 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
