In a significant win for employers, the United States Supreme Court has issued a landmark decision upholding the use of class action waivers in employment arbitration agreements. This ruling permits employers across the country to enforce individual arbitration agreements with employees, even where the agreement requires an employee to pursue legal claims on an individualized
United States Supreme Court Once Again Rejects California’s Attempt To Void Class Arbitration Waivers
In DIRECTV, Inc. v. Imburgia, a decision released this week, the United States Supreme Court rejected the California Court of Appeal’s interpretation of a binding arbitration provision that would have rendered unenforceable a class arbitration waiver provision. In doing this, the Supreme Court once again affirmed the primacy of the Federal Arbitration Act (“FAA”) and the invalidity of attempts by state courts to limit the enforceability of class arbitration waiver provisions.
DIRECTV involved a claim by consumers that DIRECTV’s early termination fees violate California law. The service agreement at issue in the action provided that any claims would be resolved by binding arbitration. The agreement contained a class arbitration waiver but provided that if the “laws of your state” made the waiver unenforceable, then the entire arbitration provision “is unenforceable.” The lawsuit was filed in 2008, prior to the United States Supreme Court’s 2011 decision in AT&T Mobility, LLC v. Concepcion holding that the FAA preempted California case law deeming class arbitration waiver provisions unenforceable.Continue Reading United States Supreme Court Once Again Rejects California’s Attempt To Void Class Arbitration Waivers
When Is It Okay to Cuss Out Your Boss?
Most of us assume that if an employee swears at a manager or, he or she can be disciplined or even fired. That assumption may be wrong, depending on the context in which the swearing occurs. A federal judge recently held that the Federal Aviation Administration violated federal labor law when it removed a local union president from its premises
New Senate Bill Would Bar Mandatory Arbitration of Employment Claims
A bill introduced in the United States Senate late last month will, if passed, prohibit mandatory, pre-dispute arbitration agreements in employment. Senate Bill 931, also known as the Arbitration Fairness Act of 2009 (AFA) was introduced by Sen. Russ Feingold (D-Wis.) and seven co-sponsors. A similar bill, HR 1020, was introduced in the House of