In a pair of cases decided by the Second Appellate District of the California Court of Appeal, the Court reiterated the difference between procedural and substantive unconscionability when it comes to invalidating arbitration agreements based on unconscionability: procedural unconscionability focuses on the fairness of the process leading to the formation of the agreement, whereas substantive
California Courts Provide Employers More Reasons to Review Their Arbitration Agreements
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
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
U.S. Supreme Court Denies Petition for Rehearing in Viking River Cruises, Inc. v. Moriana
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.
In early July, Moriana, the named plaintiff-employee at the center of Viking
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
U.S. Supreme Court Hears Oral Arguments on Waiver of PAGA Claims in Arbitration Agreements
In December 2021, the U.S. Supreme Court agreed to hear arguments in Viking River Cruises v. Moriana (Viking). The question presented in Viking is whether the Federal Arbitration Act (FAA) requires enforcement of a bilateral arbitration agreement providing that an employee cannot raise representative claims, including representative claims under California’s Private Attorneys General Act (PAGA)
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
$102 Million Pay Stub, Meal Break Judgment Against Walmart Reversed
In a significant victory for California employers, the U.S. Court of Appeals for the Ninth Circuit reversed a $102 million award against Walmart in a suit alleging that the retailer violated the California Labor Code’s wage statement and meal-break provisions. The decision is Magadia v. Wal-Mart Associates, Inc., May 28, 2021, No. 19-16184.
The
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.
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