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Employers May Prohibit Employees From Opting In To Class Actions

Last year, in Epic Systems Corp v. Lewis, the Supreme Court held that employers act lawfully when they require employees, as a condition of employment, to enter into agreements with the employer waiving their rights to pursue employment claims through class or collective actions and stipulating that any such disputes would be resolved by individualized […]

| 2 min read | Tagged: , ,
JM
Of Counsel

United States Supreme Court Continues Its Trend of Enforcing Individual Employment Arbitration Agreements

Approximately one year ago, the United States Supreme Court issued its landmark decision in Epic Systems v. Lewis, 548 U.S. ___ (2018), holding that class action waivers contained in arbitration agreements, including agreements between employers and their employees, are permissible and enforceable. See here. That decision left open, however, the question of: what if the arbitration […]

BH
Of Counsel

Transportation Workers Get a Green Light to Ignore Arbitration Agreements for Wage Claims

The California Court of Appeal in Nieto v Fresno Beverage Company took the position that a driver who delivered beverages solely within the state of California was nonetheless a “transportation worker” who was exempt from the Federal Arbitration Act (“FAA”) provisions that encourage a policy favoring arbitration. The court embraced the reasoning that “intrastate delivery […]

CJ

Check Your Arbitration Agreements: The Supreme Court Handed Workers A Big Win

In a unanimous opinion, with Justice Ginsburg concurring, the U.S. Supreme Court held that an exemption under the Federal Arbitration Act (“FAA”) applies to contracts with independent contractors. The FAA generally requires courts to enforce private arbitration agreements. But the FAA has exemptions, including “contracts of employment of . . . workers engaged in foreign […]

| 1 min read | Tagged: , ,
RB
Former Associate

Every Minute Counts: Supreme Court Rules Employers Cannot “Skim” Minutes

On Thursday, the California Supreme Court held the federal Fair Labor Standards Act de minimis rule, which limits suits over small increments of unpaid time upon a showing that the bits of time are administratively difficult to record, does not apply to California wage order claims. Limiting its holding to the facts of the case, […]

AM
Former Associate

Tolling of Statute of Limitations in Class Action Realm Narrowed

In 1974 the United States Supreme Court in American Pipe & Construction Co. v. Utah held that the timely filing of a class action tolls the applicable statute of limitations for all persons encompassed by the class complaint. This holding was clarified in 1983 in Crown, Cork & Seal Co. v. Parker to provide that […]

Supreme Court Blesses Employers’ Use of Class Action Waivers

As previously reported on October 13, 2017, see here, the Federal Courts of Appeal were evenly divided on the question of whether class action waivers contained in otherwise enforceable employment arbitration agreements were permissible.  Three Courts of Appeal, i.e., the Sixth, Seventh, and Ninth Circuits, had accepted the position advocated by the National Labor Relations […]

BH
Of Counsel

Arbitration Agreement Contained in Employee Handbook and Signed During Pending Class Action Is Invalid

On April 20, 2018, the California Court of Appeal, in the case Nguyen v. Inter-Coast International Training, Inc., held that an arbitration agreement contained in an employee handbook was both procedurally and substantively unconscionable. In that case, after a wage and hour class action was filed and certified against the employer, the employer modified its […]

AD

SCOTUS to Address Current Split Over Enforceability of Class Action Waivers Contained in Mandatory Arbitration Policies

Many employers have implemented mandatory arbitration policies requiring that all employment related disputes be resolved through final and binding arbitration rather than in traditional court proceedings. In addition to these potential benefits, many employers have added class action waivers to their arbitration policies, in essence requiring that claims be brought on an individual basis only, and […]

BH
Of Counsel

Ninth Circuit Invalidates Class Action Waivers Contained in Employment Arbitration Policies

The Ninth Circuit, currently joined by two other federal courts of appeal, has adopted the longstanding position of the National Labor Relations Board (“NLRB”) that class action waivers commonly found in employment arbitration agreements violate the right to engage in protected concerted activity pursuant to the National Labor Relations Act (“NLRA”).  Two other federal courts […]

BH
Of Counsel