A pair of recent California Court of Appeal decisions serve as yet another reminder to employers of the difficulties that they potentially face when enforcing arbitration agreements in California and, as a result, the importance of drafting clear, precise arbitration agreements. The first case, Hernandez v. Meridian Management Services, LLC, reiterated the importance of
Arbitration Agreements
The “I Do Not Recall Signing” Defense to Arbitration Agreements Ruled Out by California Court of Appeal
Among the many challenges employers face in enforcing employment arbitration agreements in California are employees arguing that they are not bound by the agreement because they do not recall signing it, even when the agreement contains their signature. A California Court of Appeal decision recently shot down this argument, holding that an employee cannot evade…
California Supreme Court Accepts Invitation to Weigh In on Employment Arbitration Agreements & PAGA
On June 15, 2022, the U.S. Supreme Court ruled in Viking River Cruises, Inc. v. Moriana that bilateral arbitration agreements governed by the Federal Arbitration Act (FAA) may require arbitration of California Private Attorneys General Act (PAGA) claims on an individual basis only.
However, Justice Sotomayor’s concurring opinion in Viking River Cruises also seemingly included…
Ninth Circuit Defers Decision on Petition for Rehearing Regarding AB 51
Last year, a divided Ninth Circuit panel found that the Federal Arbitration Act (FAA) did not completely preempt Assembly Bill (AB) 51, California’s ban on mandatory arbitration agreements. The U.S. Chamber of Commerce then filed a petition for rehearing en banc (Petition), which has been pending before the Ninth Circuit since October 2021.
On…
Ninth Circuit Rejects Ex-Tinder Employee’s Attempt to Avoid Arbitration
The Ninth Circuit Court of Appeals has ruled that an ex-Tinder employee must arbitrate her claims against her former employer and cannot pursue her claims in court, even though her claims arose before she executed an arbitration agreement. In reaching this decision, the Ninth Circuit not only enforced the broad language of the parties’ arbitration…
Ninth Circuit Upholds Arbitration for Non-Signatory Defendant
California law is not typically seen as amiable to compelling employees to arbitrate their claims. However, in Franklin v. Community Regional Medical Center, ___ F.3d___(9th Cir. 2021), the Ninth Circuit panel upheld a motion to compel arbitration by a non-signatory to an arbitration agreement based on California law.
Read the full article on Jackson Lewis…
No Initials, No Problem: California Court of Appeal Holds Failure to Initial Not Enough to Prevent Arbitration
“What if neither party to an arbitration agreement places initials next to a jury waiver contained in the agreement, even though the drafter included lines for their initials?” asked the California Court of Appeal in Martinez v. BaronHR, Inc.,Cal. App. LEXIS 631 (2020).
The employee in Martinez was given several employment-related documents, including…
Update on Arbitration Agreements in California: U.S. Supreme Court Denies Certiorari in OTO, LLC v. Kho
On June 8, 2020, the U.S. Supreme Court denied the employer’s petition for certiorari in OTO, LLC v. Kho.
As background, in 2019, the California Supreme Court ruled in OTO that the arbitration agreement at issue was not enforceable because the agreement was both procedurally and substantively unconscionable. The procedural unconscionability finding generally focused…
The State of California Submits Opening Brief in Appeal Over AB 51 Injunction, Arguing FAA Preemption Does Not Apply
On January 31, 2020, a U.S. District Court preliminarily enjoined the enforcement of Assembly Bill 51 (AB 51) against arbitration agreements governed by the Federal Arbitration Act (FAA). As enacted, AB 51 would prohibit employers from conditioning employment (including continued employment) or employment-related benefits on an individual signing a mandatory arbitration agreement for disputes arising…
California Appeals Preliminary Injunction Against State Ban on Employment Arbitration Agreements
The State of California has filed a notice of appeal of the district court’s decision granting a preliminary injunction enjoining the State from enforcing Assembly Bill 51 (AB 51) against employment arbitration agreements governed by the Federal Arbitration Act (FAA).
Please find the full article on the Jackson Lewis Publications page here.