In 2019, AB 51 is Passed As readers of this blog know, in 2019 the California legislature passed AB 51, a new law that added Section 432.6 to the California Labor Code. This new statute made it illegal for an employer to require an applicant or employee, as a condition of employment, to sign an… Read More
Posts Tagged With: arbitration
Note to Employers: Craft Your Arbitration Agreements Carefully
A recent Court of Appeal decision underscores the importance of reviewing severability provisions in arbitration agreements. In Kec V. Superior Court, Plaintiff Nichole Kec brought individual, class, and Private Attorneys General Act (“PAGA”) claims against her former employer, defendants R.J. Reynolds Tobacco Company and Reynolds American, Inc. (“Reynolds”), as well as three individual employees at… Read More
Employers, Beware: Right to Arbitrate can be Waived
Arbitration agreements that are well-drafted and “state-of-the-art” under current California law are key to ensuring that employment disputes will be resolved by final and binding arbitration. But a recent California Court of Appeal case – Fleming Distribution Co. v. Younan (Cal. Ct. App., May 15, 2020, No. A157038) 2020 WL 2511680 – is a cautionary… Read More
Court Blocks AB 51 From Taking Effect on January 1, 2020
AB 51 was signed by Governor Newsom back in October 2019. AB 51 generally prohibited employers from requiring employees, as a condition of employment, to agree to arbitrate any future Labor Code claims and/or Fair Employment and Housing Act (“FEHA”) claims. AB 51 also made it illegal for employers to use an “opt out” provision… Read More
SCOTUS Rules Employees Cannot Band Together in Class Arbitrations
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
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
U.S. Supreme Court Upholds Class Action Waivers
It was only a few weeks ago. California employees and their lawyers were jubilant after the CA Supreme Court delivered its game-changing Dynamex decision that made it even harder for California employers to properly classify workers as independent contractors. As a result, employment protections were extended to millions of California workers who were also given the right… Read More
Arbitration Agreements — A Seawall to Surging PAGA Lawsuits?
Since its passage in 2004, California’s Private Attorneys General Act (“PAGA”) has been a weapon used by employees and their lawyers across California. PAGA allows one “aggrieved employee” to sue his/her employer in a representative capacity and to recover penalties and attorneys’ fees for technical violations of the California Labor Code suffered by that one employee… 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
