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
Seyfarth Synopsis: The NLRB has withdrawn the significant concession it offered at oral argument on the nature of the NLRA rights it seeks to assert in the face of employers’ mandatory arbitration programs.
As noted in our earlier blog post, the Supreme Court heard oral…
Continue Reading NLRB About-Face Highlights Lack of Reasoning on the Class Action “Right” It Seeks to Assert
Employers have faced questions about the enforceability of arbitration agreements with class and collective action waivers since the NLRB’s highly controversial D.R. Horton decision in 2012, which held that the waivers violate employees’ right to engage in protected concerted activity. The Fifth Circuit refused to enforce the decision, and other courts followed…
Continue Reading Mandatory Arbitration, Class Waivers, and the Future of Wage-Hour Litigation: 6th Circuit Shows One Reason Why High Court Rejection of D.R. Horton Theory Would Not Kill Collective Actions
Authored by Kiran A. Seldon
Seyfarth Synopsis: Three decisions issued earlier this month reveal an increasing tension between the Ninth Circuit and California appellate courts on whether representative PAGA actions can be arbitrated. As a result, employers wishing to compel arbitration of representative PAGA claims are likely to be better off in federal court than in state court.
Gentry is dead. Back in 2007, the California Supreme Court, in Gentry v. Superior Court held that California public policy favoring class actions was so important that employers cannot have employees, in arbitration agreements, waive their right to pursue a class action. Many thought that the Gentry rule contradicted the Federal Arbitration Act,…
Continue Reading BREAKING NEWS RE CALIFORNIA CLASS ACTION WAIVERS: GENTRY IS DEAD; LONG LIVE PAGA.
While employers have been waiting patiently for the California Supreme Court’s decision regarding the enforceability of class and representative action waivers in arbitration agreements, last week, a California federal court jumped into the fray and held that state law rules are powerless against the broad preemptive power of the Federal…
Continue Reading Preempt This! California Federal Court Holds that Federal Law Preempts State Law Rules Against Waivers in Arbitration Agreements
Authored by Gena Usenheimer
In a decision that is becoming more and more commonplace, last week the Central District of California enforced a class action waiver in an arbitration agreement, rejecting the panoply of arguments raised by the plaintiff in opposition.
In Appelbaum v. AutoNation, Inc., et al., the plaintiff sought to representative a putative class of service technicians and…
Continue Reading Another One Bites the Dust: Central District of California Joins the Chorus of Courts Enforcing Class Action Waivers
Authored by Jim Harris
The California Supreme Court heard oral argument in two important cases involving employment-related class actions. From the tenor of and comments made at the argument, it appears likely that the ultimate results will be a mixed bag for employers.
The first case, Iskanian v. CLS Transportation of Los Angeles, LLC, which we reported on late…
Continue Reading Let’s Play Two: California Supreme Court Hears Oral Argument in Two Important Class Action Cases
D.R. Horton Who? Who is not the question here, it is why and what is going on with the NLRB saga? Last week, the NLRB filed a petition for rehearing with the Fifth Circuit seeking reconsideration and reversal of the appellate court’s December 2013 decision regarding employee class action waivers.
Authored by Robert S. Whitman
In a decision that management lawyers hope was not an April Fool’s prank, the Fourth Circuit earlier this week upheld an arbitration agreement with a class action waiver, reversing a district court decision that held the waiver unenforceable.
In so holding, the appeals court signaled its continued adherence to the holding in AT&T Mobility LLC…