Paula Lopez, September 29, 2016. On September 25, 2016, California Governor, Jerry Brown, signed into law legislation that voids contract provisions in any agreement entered into between an employer and a California resident that requires, as a condition of employment, that an employee agree to have disputes adjudicated (includes litigation and arbitration) outside of California and under the laws of another state. The law, known as Senate Bill 1241[1], will apply to contracts entered into, modified or extended on or after January 1, 2017. Key provisions of the…
Paula Lopez, May 13, 2016. Earlier this month, a split three-member NLRB panel affirmed the December 24, 2015 administrative law judge’s decision invalidating a class and collective action waiver contained in CVS’s workplace arbitration policy. The administrative decision was one of a flurry of decisions issued by the NLRB at the end of 2015 addressing this issue and continuing to apply the Board’s decisions in D.R. Horton and Murphy Oil U.S.A., Inc. to invalidate class action waivers. D.R. Horton and Murphy Oil U.S.A. hold that implementing and maintaining…
Nicholas Fortuna, January 22, 2014. Arbitration Favored Over Class/Collective Action Mandatory arbitration agreements in the employment setting gathered steam this year. The U.S. Supreme Court’s decision in American Express Co. v. Italian Colors Restaurant held that mandatory arbitration agreements with explicit waivers of the right to bring a class or collective action are enforceable notwithstanding federal common law and federal statutes to the contrary (i.e. National Labor Relations Act). The Courts of Appeals have universally upheld the waivers and enforced employment arbitration agreements. This is true even when…