Tag Archives: Arbitration

California Appellate Court Rejects Legislative Attempt to Circumvent Federal Arbitration Act on Claims Involving the Ralph Act and Bane Act

In Saheli v. White Memorial Medical Center (B283217, Cal. Ct. App., March 14, 2018), the Court of Appeal for the Second Appellate District addressed for the first time whether restrictions on arbitration agreements contained in the Ralph Act and Bane Act are preempted under the Federal Arbitration Act (“FAA”). “The Ralph Act broadly provides that … Continue Reading

California Transportation Industry Waives Goodbye to Enforcement of Federal Arbitration Act Provisions in Employment Contracts

In a loss for the California transportation industry, the Court of Appeal for California’s Fourth Judicial District recently found in Muro v. Cornerstone Staffing Solutions, Inc., that the Federal Arbitration Act (“FAA”) is unenforceable in employment contracts regarding employees who are engaged in transporting goods in interstate or foreign commerce, regardless of whether the employer … Continue Reading

California Court of Appeals Holds Labor Code § 558 Claims Are Indivisible Claims and Not Arbitrable

In Lawson v. ZB, N.A. (2018) 18 Cal.App.5th 705, California’s Fourth District Court of Appeal recently ruled that the two elements comprising damages under Labor Code § 558 – (a) underpaid wages and (b) denominated assessments – are indivisible. Because a claim under Labor Code § 558 is indivisible and it is a civil penalty … Continue Reading

Arbitration Agreements

Denying an employer’s motion to compel individual arbitration of a wage and hour class action, a California federal court ruled that the employer’s dispute resolution program violated its employees’ right to engage in concerted action under the National Labor Relations Act (“NLRA”). Totten v. Kellogg Brown & Root, LLC. Notably, this ruling departs from the … Continue Reading

Employer Cannot Enforce Class Action Waiver Because Court of Appeal Rules Interstate Truck Drivers Not Subject to FAA

On October 26, 2015, a California Court of Appeal held that the Federal Arbitration Act (“FAA”) does not apply to interstate truck drivers, and as a result, it ruled that an employer’s class action waiver was unenforceable as a matter of public policy under the California Gentry rule. Garrido v. Air Liquide Industrial U.S. LP, … Continue Reading

California Ban on Waiver of Representative PAGA Claims Not Barred by Federal Arbitration Act, Federal Court Holds

Declining to enforce a representative action waiver contained in an arbitration agreement, the Ninth Circuit Court of Appeals, in San Francisco, has held that the Federal Arbitration Act (“FAA”) does not preempt California’s “Iskanian rule,” which prohibits waiver of representative claims under the state Private Attorneys General Act of 2004 (“PAGA”), Cal. Lab. Code § … Continue Reading

Ninth Circuit Finds Plaintiff Knowingly Agreed to Arbitration of Title VII Claims

A recent decision by the Ninth Circuit reversed a district court’s denial of an employer’s motion to compel arbitration under the Federal Arbitration Act (“FAA”). This decision is notable because the applicable dispute resolution policy, outlining the terms of arbitration, was contained within the company’s policy manual and detached from the employee’s signed acknowledgment of … Continue Reading

California Appeals Court Affirms that Employee Signature Acknowledging Clear Arbitration Policy Makes Policy Binding

In a recent opinion affirming an arbitrator’s judgment in favor of an employer on various employment law claims, the California Court of Appeal held that an employee agreed to arbitrate all claims against her former employee when she signed an arbitration policy contained in an easy-to-read document distinct from any other document the she signed … Continue Reading

No Arbitration if Invalid PAGA Waiver Cannot be Severed

On February 27, 2015, the California Court of Appeal determined that arbitration could not be compelled in Securitas Security Services USA, Inc. v. Superior Court (Edwards). Securitas’ arbitration agreement contained a waiver provision, waiving both class actions and representative Private Attorney General Act (PAGA) actions. In addition to waiving these claims, the waiver provision expressly … Continue Reading

California Court of Appeal Rules PAGA Claims Must Be Stayed Pending Outcome of Individual Arbitration on Underlying Individual Wage and Hour Claims

On February 26, 2015, in Franco v. Arakelian Enterprises, Inc., Case No. B232583, the California Court of Appeal, Second Appellate District held that trial court proceedings on claims pursuant to the California Private Attorney General Act (“PAGA”) (Labor Code § 2698 et seq.) must be stayed pending individual arbitration of the underlying individual wage and … Continue Reading

Enforceability of PAGA Waivers in Arbitration Agreements – The Battle Continues

The battle over whether employees may waive the right to pursue claims under California’s Private Attorneys General Act (PAGA) in arbitration continues. The Supreme Court of the United States recently requested a response from ex-Bridgestone Retail Operations LLC employees to Bridgestone’s January 5, 2015 petition for a writ of certiorari challenging the California Supreme Court’s … Continue Reading

California Supreme Court Decision Barring Waiver of Representative Claims is Left Intact by U.S. Supreme Court

The U.S. Supreme Court has declined to review the California Supreme Court’s decision that representative claims under the California Labor Code Private Attorneys General Act (“PAGA”) cannot be waived in employment arbitration agreements. Iskanian v. CLS Transp. Los Angeles, LLC, 59 Cal. 4th 348 (Cal. 2014), cert. denied, No. 14-341 (U.S. Jan. 20, 2015). In … Continue Reading

Arbitrator, Not Court, Decides Arbitration Agreement’s Enforceability, California Court Holds

A clause delegating to an arbitrator the authority to decide questions of an arbitration agreement’s enforceability was not unconscionable under California law, the California Court of Appeal has ruled. Malone v. Superior Court, No. B253891 (Cal. Ct. App. June 17, 2014). The Court affirmed an order enforcing the delegation clause and compelling arbitration. Significantly, the … Continue Reading

Employer Did Not Waive Right to Arbitration Despite One-Year Delay, California Court Rules

An employer that petitioned to compel arbitration one year after the employee filed his employment-related complaint did not waive its right to arbitrate the complaint, the California Court of Appeal has ruled, confirming the burden of proving a party waived its right to arbitration is a heavy one. Gloster v. Sonic Automotive, Inc., No. A137081 … Continue Reading

Arbitrator, Not Court, Decides Arbitration Agreement’s Enforceability, California Court Rules

A trial court lacked authority to rule on the enforceability of an arbitration agreement when the parties had contracted to delegate questions about the agreement’s enforceability to the arbitrator, the California Court of Appeal has ruled, reversing the denial of arbitration in a wrongful discharge action. Tiri v. Lucky Chances, Inc., No. A136675 (Cal. Ct. … Continue Reading

Spanish-Speaking Employees and English Arbitration Agreements

On April 21, 2014, a California Appellate Court held that an arbitration agreement is unconscionable and an employer cannot compel arbitration when the employer failed to translate the entirety of an English-language employment agreement containing an arbitration agreement, confidentiality clause, and enforceability provision for its Spanish-speaking employees. In Esteban H. Carmona et al. v. Lincoln … Continue Reading

California Courts Continue to Embrace Binding Arbitration Agreements

With increasing frequency, California courts (especially federal district courts) are enforcing binding arbitration agreements between employers and employees.  In Richards v. Ernst & Young, No. 11-17530 (9th Cir. Aug. 21, 2013), the Ninth Circuit recently reversed a denial of the employer’s motion to compel arbitration of the employee’s wage and hour claims.  In so doing, … Continue Reading

Handbook Policy Rescues Binding Arbitration Agreement

While employees continue to challenge binding arbitration agreements with gusto, California courts have shown a consistent willingness to enforce agreements where fundamental fairness exists. In Serpa v. California Surety Investigations, Inc., No. B237363 (Cal. Ct. App. Apr. 19, 2013), a California Court of Appeal reversed a trial court order denying the employer’s motion to compel … Continue Reading
LexBlog