Arbitration

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Seyfarth Synopsis: In vetoing the California Legislature’s attempt to criminalize arbitration agreements (AB 3080), Governor Brown displayed common sense and the legal learning provided by recent U.S. Supreme Court authority.

Haven’t high courts already upheld mandatory arbitration agreements?

Yes, they have. The California and U.S. Supreme Courts have repeatedly ruled that employers may require employees to enter valid arbitration agreements…
Continue Reading Governor Brown Vetoes Legislative Attempt to Criminalize Mandatory Arbitration

Seyfarth Synopsis. Pending California legislation would make a mandatory arbitration agreement an unlawful practice under the Fair Employment and Housing Act, and a crime. How could that be consistent with the Federal Arbitration Act?

Under current law, California businesses can insist that employees and contractors enter valid agreements to resolve disputes in front of a neutral arbitrator instead of a…
Continue Reading Is California’s Latest Assault on Arbitration Constitutional?

Seyfarth Synopsis: California courts are often hostile towards defendants that seek to require litigious employees to honor their arbitration agreements. The defendant’s plight might seem more stark still if the defendant has not itself signed the agreement. But defendant employers still have means of enforcing such agreements, which can be especially significant in class actions claiming joint employment. 

Despite the…
Continue Reading No Signature? No Problem! Enforcing Arbitration Even Without Everyone Signing

Seyfarth Synopsis: On September 25 (yes, a Sunday), Governor Brown signed into law Senate Bill 1241. SB 1241, effective January 1, 2017, adds Section 925 to the Labor Code to restrain the ability of employers to require employees to litigate or arbitrate employment disputes (1) outside of California or (2) under the laws of another state. The only exception …
Continue Reading SB 1241—What Happens in California Stays in California (Sorry, Vegas)

On October 11—his very last day to sign or veto bills—Governor Brown vetoed the much-feared Assembly Bill 465. AB 465 would have banned mandatory agreements to arbitrate Labor Code claims as a condition of employment. At least for now, employers with such arbitration programs can breathe a sigh of relief. We previously reported about AB 465 in more detail here…
Continue Reading Governor’s Pen Sends Anti-Employment Arbitration Bill to the Grave

Tearing contract sheetOn August 31, the California Legislature passed AB 465, aiming to “ensure that a contract to waive any of the rights, penalties, remedies, forums, or procedures under the Labor Code”—such as an arbitration agreement—is “a matter of voluntary consent.” This bill, now before Governor Brown for his approval, raises two big questions: (1) will the Governor sign the bill, and,…
Continue Reading California Moves Toward Ban On Mandatory Arbitration of Labor Claims

HiResIn this season of family road trips and every parent’s favorite question from the back seat—“are we there yet?”—California employers on the road to arbitration recently received some good directions from the Supreme Court. As explained here by our very own Pam Vartabedian, the California Supreme Court recently smoothed over some bumps in that road, holding that reasonably balanced…
Continue Reading “Are We There Yet?” The Road To Arbitration

By Christopher Crosman

Navigating the shoals of California law on arbitration agreements has been exceedingly difficult.  The California Supreme Court has maintained a long tradition of general antipathy to mandatory arbitration, and has been particularly hostile to arbitration agreements that limit a plaintiff’s ability to pursue a class action.  For example, Discover Bank v. Superior Court, 36 Cal. 4th …
Continue Reading California Law On Class Action Waivers In Arbitration Agreements: As Clear As Mud

By Jeff Berman, David Kadue and Colleen Regan

Continuing to push back against the federal policy in favor of arbitration contained in the Federal Arbitration Act, the California Supreme Court has handed down its long-awaited decision in Sonic-Calabasas, Inc. v. Moreno.  A copy of the decision can be accessed here. 

The California Supreme Court had earlier ruled that …
Continue Reading New California Supreme Court Arbitration Decision: Sonic-Calabasas v. Moreno