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).

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On January 31, 2020, the district court in Chamber of Commerce of the United States, et al. v. Becerra, et al., E.D. Cal. Case No. 2:19-cv-2456, granted the request for a preliminary injunction enjoining the State of California (the State) from enforcing Assembly Bill 51 (AB 51) against arbitration agreements governed by the Federal Arbitration

The district court in Chamber of Commerce of the United States, et al. v. Becerra, et al., E.D. Cal. Case No. 2:19-cv-2456, granted the request for a preliminary injunction enjoining the State of California from enforcing Assembly Bill 51 (AB 51) with respect to arbitration agreements governed by the Federal Arbitration Act (FAA).

AB 51

Earlier today, the U.S. District Court for the Eastern District of California heard oral arguments on whether the court should enter a preliminary injunction preventing the State of California (State) from enforcing AB 51 while the court resolves the underlying challenge to the new law on the merits. See Chamber of Commerce of the United

California has joined a number of states in passing legislation purporting to prohibit mandatory arbitration agreements for sexual harassment and other claims. Such laws have gained popularity in the wake of the #MeToo movement, but are subject to challenge under Federal Arbitration Act (FAA) preemption principles.

Under Assembly Bill 51, signed by Governor Gavin Newsom

The U.S. Supreme Court’s recent ruling that class action waivers in employment arbitration agreements are enforceable under the Federal Arbitration Act (FAA) does not extend to claims under the California Private Attorneys General Act (PAGA). Epic Systems Corp. v. Lewis, No. 16-285; Ernst & Young LLP et al. v. Morris et al., No. 16-300; National

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

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 receipt of the manual. The Ninth Circuit reversed the district court’s decision on the grounds the language of the employer’s dispute resolution policy, separately outlined within the company’s policy manual, expressly indicated a waiver of the right to a judicial forum for civil rights claims such that the employee “knowingly” agreed to arbitrate his Title VII claim. Michael Ashbey v. Archstone Property Management, Inc., No. 12-55912 (9th Cir., May 12, 2015).
Continue Reading Ninth Circuit Finds Plaintiff Knowingly Agreed to Arbitration of Title VII Claims

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 Iskanian, the California Supreme Court ruled the Federal Arbitration Act (“FAA”) preempted California law disfavoring enforcement of a class action waiver in employment arbitration agreements. However, it also ruled the FAA did not preempt representative actions under PAGA. For additional information on Iskanian, please see our article, California High Court: Class Action Waivers in Arbitration Valid, But Waivers of Representative Actions under State Law Are Not.
Continue Reading California Supreme Court Decision Barring Waiver of Representative Claims is Left Intact by U.S. Supreme Court

Whether the parties to an arbitration agreement agreed to class arbitration is a question for the arbitrator, not the trial court, the California Court of Appeal has ruled, reversing an order dismissing class claims alleging violations of California’s Fair Employment and Housing Act and Unfair Competition Act. Sandquist v. Lebo Automotive, Inc., No. B244412 (Cal. Ct. App. July 22, 2014).
Continue Reading Arbitrator, Not Court, Decides Whether Arbitration Agreement Applies to Class Claims, California Court Rules