Archives: Arbitration

Subscribe to Arbitration RSS Feed

Sexual Harassment Claims Put Non-Disclosure and Arbitration Agreements Under Scrutiny, Resulting in a Flurry of Legislative Action

In the current climate where sexual assault and harassment allegations against Hollywood elite, Congressmen and news anchors have triggered a wave of “me too” allegations, several tools commonly used by employers to shield themselves from liability have come under attack, including non-disclosure agreements (NDAs) and arbitration agreements. Many employers require employees to sign NDAs as … Continue Reading

Supreme Court Weighs Validity of Employer Class Action Waivers; Justices’ Questions Suggest A Close Decision Ahead

Yesterday marked the first day of the United States Supreme Court’s new term, and the first case heard (Epic Systems Corp. v. Lewis) was one of interest to employers around the country.  In several cases consolidated before the Court on appeal, the National Labor Relations Board (“NLRB”) found employer arbitration agreements that included waivers of … Continue Reading

Class Action Waivers: Two More Fifth Circuit Opinions Favor Waivers Over NLRB Challenges

In early August, the United States Court of Appeals for the Fifth Circuit issued two decisions regarding class and collective action waivers.  Like its earlier decisions in D.R. Horton, Inc. and Murphy Oil USA, Inc., both decisions supported employers’ use of waivers to eliminate group lawsuits against them in employment cases.  The two new cases, … Continue Reading

Sixth Circuit Joins Two Sister Circuits In Holding That Class Action Waivers In Employment Arbitration Agreements Violate National Labor Relations Act

Court joins Seventh and Ninth Circuits in holding that employer’s requiring employees to waive class and collective action procedures as a condition of employment is unenforceable, but issue will be resolved late this year by United States Supreme Court The issue of whether an employer can require, as a condition of employment, that an employee … Continue Reading

California High Court Weighs In On Arbitration, Again

On April 6, 2017, the California Supreme Court issued its decision in McGill v. Citibank, once again striking out against arbitration agreements – this time declining to enforce a provision in a credit card account agreement which prevented the cardholder from bringing a claim for an injunction on behalf of the general public. The legal focus … Continue Reading

US Supreme Court to Resolve Dispute Over Enforceability of Class Waivers in Arbitration Agreements

  As followers of our blog know, we have been closely watching developments over the past few years involving the tension between the National Labor Relations Board and the courts concerning whether arbitration agreements that require employees to resolve most employment-related disputes in individual arbitration proceedings, and bar the use of class or collective action … Continue Reading

Another Bill, Another Restriction on Arbitration

When it comes to employment laws, California is generally considered an employee‑friendly state. On September 25, California Governor Jerry Brown made it just a little more friendly by signing bill S.B. 1241.  For employees that primarily reside and work in California, S.B. 1241 prohibits employers from requiring an employee, as a condition of employment, to … Continue Reading

Ninth Circuit Widens Circuit Split on Enforceability of Class and Collective Action Waivers In Individual Employment Arbitration Agreements

Ninth Circuit joins Seventh Circuit in holding that class and collective action waivers in arbitration agreements violate the National Labor Relations Act and therefore are unenforceable. The question is straightforward enough:  does an employer violate the National Labor Relations Act (NLRA) by requiring that employees sign an agreement to arbitrate any claims concerning their wages, … Continue Reading

NLRB Not Waffling on Pre-employment Class-Action Waivers Despite Fifth Circuit Reversals

Nearly two years after Waffle House Inc. employee Carrie Harris filed an unfair labor practices charge, the Georgia-based breakfast chain was unable to butter up the National Labor Relations Board (NLRB). Harris’ complaint alleged that Waffle House’s arbitration agreement that employees were required to execute as a condition of their employment violated the National Labor … Continue Reading

Supreme Court Reiterates Preemptive Effect of Federal Arbitration Act

The U.S. Supreme Court has once again reinforced its interpretation of the Federal Arbitration Act, ruling on December 14 that a California state law prohibiting class action waivers in arbitration agreements may not trump the Court’s earlier decision in favor of enforcement of arbitration agreements. In the four years since the Supreme Court’s decision in … Continue Reading

NLRB’s Isolated Position on Class and Collective Action Waivers Takes Another Hit

Fifth Circuit Rejects NLRB’s En Banc Hearing Request, Setting Up Likely Denial of Enforcement in Murphy Oil, USA  In its 2012 decision in D.R. Horton, Inc., the National Labor Relations Board (NLRB) held that employers that require employees to agree to arbitrate employment-related claims, and to do so only on an individual basis, waiving the … Continue Reading

NLRB Says Employer’s $900,000 Private Settlement Is Insufficient to Escape Unfair Labor Practice Proceeding

Readers of our blog are well aware of the National Labor Relations Board’s position that agreements between employers and employees to resolve employment-related claims on an individual basis through binding arbitration, and which thereby waive or prohibit the bringing of such claims on a class or collective action basis, violate the guarantee in Section 7 … Continue Reading

United States Supreme Court Declines to Review California Supreme Court Decision Erecting Barriers Against Arbitrating Private Attorneys General Act Claims

On January 20, the United States Supreme Court denied a motion for certiorari filed by CLS Transportation which was appealing the California Supreme Court’s decision in Iskanian v. CLS Transportation, about which we blogged in June. While Iskanian generally vindicated employers’ right to enforce class action bans in arbitration agreements, the California Supreme Court distinguished … Continue Reading

The Dangers of Obtaining Electronic Signatures for Arbitration Agreements

In an effort to go paperless, many employers send and obtain signatures for important employment documents electronically.  A decision issued by the California Court of Appeal on December 23, 2014 highlights the dangers employers may face when relying on an entirely electronic system.  In Ruiz v. Moss Bros. Auto Group, Inc. [pdf] (Case No. E057529), … Continue Reading

US Appeals Court Says Collective Action Waiver in Separation Agreement Unenforceable As Improper Limit on FLSA Rights

As we’ve reported here and here, recent decisions from the US Supreme Court, federal appellate courts, and more recently, even the California Supreme Court (see here) have clarified that class and collective action waivers in arbitration agreements, including those that waive employees’ right to bring a claim under the federal Fair Labor Standards Act (FLSA) … Continue Reading
LexBlog