California Employment News: The State of Mandatory Arbitration Agreements in California Employment
Podcast: California Employment News - The State of Mandatory Arbitration Agreements in California Employment
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Employment Law Now VI-114-Banning Arbitration of Sexual Harassment/Assault Claims
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Arbitration Clauses in Employee Contracts and Beyond
The Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (“EFAA”) amended the Federal Arbitration Act to prohibit mandatory arbitration of sexual harassment and sexual assault claims. In Doe v. Second...more
Seyfarth Synopsis: The federal Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (“EFAA”) renders arbitration agreements unenforceable with regard to claims of sexual assault and sexual harassment....more
Seyfarth Synopsis: In line with recent anti-arbitration trends, the California Court of Appeal recently decided two cases – Doe v. Second Street Corp. and Liu v. Miniso Depot CA, Inc. – that apply the federal Ending Forced...more
Landlords and property managers are increasingly adding arbitration clauses with class action waivers to their residential leases. These lease provisions can protect landlords from the significant time and costs associated...more
It is generally understood, or at least it has been in the past, that plaintiffs prefer to avoid the application of the Federal Arbitration Act (the “FAA”) and instead present their cases to juries. As such, plaintiffs have...more
The use of arbitration agreements between employers and employees is a long-standing practice that has become an integral part of employment dispute resolution across the country. Employers often use arbitration agreements...more
The U.S. Supreme Court heard oral argument on Feb. 20, 2024, on whether food distributors are exempt from arbitration under Section 1 of the Federal Arbitration Act (FAA), governing "contracts of employment of seamen,...more
There are times when one would rather not be proven right. Nearly four years ago, a California district court invalidated AB 51, which sought to prohibit mandatory arbitration by, among other things, calling for criminal...more
Hop into the time machine with me so I can take a quick victory lap before I revert to being the ever-cautious counselor. Way back in October 2019, I not-so-subtly indicated my belief that a California statute banning...more
Arbitration agreements are a powerful tool used by many employers to compel the utilization of arbitration as a means of alternative dispute resolution. Arbitration allows the parties of a claim to resolve the dispute...more
As previously discussed, courts continue to disagree over the enforceability of mandatory arbitration provisions containing class action waivers set forth in benefit plans governed by the Employee Retirement Income Security...more
When Congress passed and President Biden signed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (“the Act”) last year, we predicted it was just the beginning of an all-out federal assault on...more
In Hicks Unlimited, Inc. v. UniFirst Corporation, the Supreme Court of South Carolina agreed with a trial court ruling that the underlying contract between the parties, which included mandatory arbitration “to be governed by...more
On June 23, 2023, the Supreme Court of the United States held district court proceedings must be put on hold during an appeal on the question of whether claims are subject to arbitration. The ruling is a big win for...more
The recent 9th Circuit opinion in US Chamber of Commerce v. Bonta struck down AB 51, determining that it was preempted by the Federal Arbitration Act. Meagan Bainbridge and Lukas Clary review how this decision impacts the use...more
Once again, the California legislature's attempt to kneecap arbitration agreements in the employment arena has been swept aside by a federal court. As of February 15, 2023, California employers may continue to require...more
On February 24, 2023 the United States District Court for the Southern District of New York held that a former employee’s arbitration agreement with his former employer was unenforceable under the Ending Forced Arbitration of...more
As of February 15, 2023, employers in California may once again require mandatory arbitration as the US Court of Appeals for the Ninth Circuit held that the Federal Arbitration Act (FAA) preempts Assembly Bill 51 (AB 51), a...more
On 15 February 2023, the Ninth Circuit Court of Appeals (Ninth Circuit) struck down California Assembly Bill 51 (AB 51), the state’s anti-arbitration legislation, holding that the Federal Arbitration Act (FAA) “preempts AB 51...more
On February 15, 2023, a split 9th Circuit panel held that California's ban on mandatory arbitration agreements is preempted by federal law. This closely watched decision allows employers to require employees to enter into...more
On February 9, 2023, the U.S. Court of Appeals for the Tenth Circuit refused to enforce an arbitration clause contained in an employee stock ownership plan (“ESOP”) document. In a 41-page opinion, the Court held that the ESOP...more
On February 15, 2023, the Ninth Circuit Court of Appeals decided Chamber of Commerce v. Bonta and found that the Federal Arbitration Act (FAA) preempts California’s Assembly Bill 51 (AB 51). Background: The FAA embodies a...more
On Feb. 15, 2023, the Ninth U.S. Circuit Court of Appeals affirmed a district court’s ruling that the Federal Arbitration Act (FAA) preempts California Assembly Bill 51 (AB 51), which made it a criminal offense for an...more
Avid readers of Stokes Wagner’s legal updates may be familiar with California’s Assembly Bill 51, a law that, until very recently, prohibited California employers from requiring employees or job applicants to sign arbitration...more