Arbitration

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By: Gina Gi

Seyfarth Synopsis: The U.S. Supreme Court has resolved a circuit split, holding “last mile” drivers transporting goods within a single state can, but do not necessarily, fall within the transportation worker exemption under section 1 of the Federal Arbitration Act. As a result, such workers may be allowed to bypass mandatory arbitration agreements governed by the FAA.…

Continue Reading Supreme Court Affirms the Transportation Worker Exemption Can Apply to “Last-Mile” Drivers, Allowing Them to Bypass Arbitration Under the FAA

By: Andrew McKinley

Seyfarth Synopsis: Businesses with arbitration programs often oppose the issuance of notice in FLSA collective actions on the ground that many potential recipients have binding arbitration agreements precluding them from participating in a case. The majority of federal appellate courts have not yet addressed whether arbitration must be addressed before or after notice issues. The Sixth…

Continue Reading Sixth Circuit Joins the Chorus of Appellate Decisions Requiring Arbitration to Be Assessed Before FLSA Notice Issues

By: John P. Phillips

Seyfarth Synopsis: Since the Supreme Court’s decision in Southwest Airlines Co. v. Saxon, many employers have seen an uptick in plaintiffs seeking to avoid arbitration by arguing that they are transportation workers and thus not subject to the Federal Arbitration Act. But as the subsequent history in the Saxon decision makes clear, employers can—and…

Continue Reading State Law Can Serve as a Backstop to the Federal Arbitration Act

By: Sage Fishelman and Josh Rodine

Seyfarth Synopsis: A divided Ninth Circuit Court of Appeals panel has ruled that the Federal Arbitration Act (FAA) preempts California Assembly Bill 51 (AB 51), which purports to prohibit employers from requiring job applicants and workers from signing arbitration pacts. The panel further concluded that AB 51’s criminal penalties are preempted by the FAA.

Continue Reading Ninth Circuit Rehearing Suggests a FAArewell to California’s Arbitration Prohibition

By: Andrew Scroggins & Nicolas Lussier

Seyfarth Synopsis: Couriers who transport goods from restaurants and grocers who have connected to consumers via the Postmates app are not “engaged in foreign or interstate commerce,” according to a recent decision by the First Circuit Court of Appeals. As a result, the couriers don’t satisfy the “transportation worker” exception to the…

Continue Reading First Circuit Delivers Win To Companies Hungry To Enforce Mutual Arbitration Agreements With Couriers Who Rarely Cross State Lines

By: Julia Keenan and Noah Finkel

Seyfarth Synopsis: The Supreme Court held that no showing of prejudice is necessary to establish a waiver of the right to arbitrate. The validity and enforceability of arbitration agreements themselves is not affected by this ruling.

Followers of this blog, and of wage and hour litigation generally, have seen an unbroken string of victories…
Continue Reading Prejudice will no longer be considered when deciding if a waiver of arbitration occurred; Not to worry, arbitration clauses still as enforceable as ever

By: John Phillips and Andrew Scroggins

Seyfarth Synopsis:  On March 17, the House of Representatives passed the “Forced Arbitration Injustice Repeal Act of 2022” or the “FAIR Act,” which would ban the use of mandatory arbitration agreements and class and collective action waivers in the employment context (as well as for consumer, antitrust, and civil rights disputes).  If the Act …
Continue Reading Another Step Down the Slope: The House of Representatives Votes to Ban Mandatory Employment Arbitration and Class and Collective Action Waivers

By: Robert Whitman and John Phillips

If Appraisal Is Governed by the Federal Arbitration Act, What Is the Process? | Property Insurance Coverage Law Blog | Merlin Law GroupSeyfarth Synopsis: Recently, Congress passed significant new legislation amending the Federal Arbitration Act and precluding employers from mandating that employees arbitrate sexual harassment or sexual assault claims.  Importantly for employers, however, this new law does not impact employers’ ability to require arbitration of wage-hour claims, which, for most employers, is benefit of employment arbitration …
Continue Reading Mandatory Arbitration of Wage-Hour Claims Alive and Well After Congress Bans Some Agreements

By: Robert Whitman and John Phillips

As we previously reported, arbitration agreements have come under increasing scrutiny in recent years, especially with regard to claims for sexual harassment/assault arising during employment.

A number of states have already attempted to limit employers’ ability to require arbitration of such claims.  For example, state legislatures in California, Maryland, New Jersey, New York,…
Continue Reading Bipartisan Push to Curb Arbitration of Sexual Harassment Claims Gaining Momentum

By: Ryan McCoy

Seyfarth Synopsis: The Federal Arbitration Act (“FAA”) exempts workers engaged in interstate commerce from enforcement of mandatory arbitration agreements. Uber drivers (and other drivers working in the gig economy) have frequently argued that they fit under this “interstate transportation” exemption in order to avoid arbitration of their claim that they have been misclassified as independent contractors. A …
Continue Reading Ninth Circuit Rules Uber Drivers Must Arbitrate Classification Claims Because They Are Not Interstate Transportation Workers