Arbitration Agreements

In Country Wide Financial Corporation, 369 NLRB No. 12 (2020), the National Labor Relations Board ruled that an mandatory arbitration agreement violated the National Labor Relations Act because it restricted an employees’ ability to file and pursue unfair labor practice charges before the Board.
Continue Reading The NLRB Rules Mandatory Arbitration Agreement As Overbroad

Earlier today, Eastern District of California Judge Kimberly Mueller granted a preliminary injunction, prohibiting the state of California from enforcing AB 51, which sought to prohibit companies in California from requiring arbitration agreements as a condition of employment. 
Continue Reading California Court Grants Preliminary Injunction Against Law Prohibiting Arbitration Agreements As A Condition of Employment

Earlier today, District Judge Kimberly J. Mueller of the United States District Court for the Eastern District of California, granted a temporary restraining order that temporarily prohibits the state of California from enforcing AB 51, a law that would prohibit companies in California from requiring arbitration agreements as a condition of employment.  
Continue Reading California Court Temporarily Enjoins Enforcement Of Law Prohibiting Arbitration Agreements As A Condition of Employment

On December 6, 2019, a coalition of both national and state business organizations and trade associations filed a Complaint in the U.S. District Court for the Eastern District of California.  The lawsuit seeks both a preliminary and permanent injunction against implementation and enforcement of the recently enacted California law that makes it unlawful for California employers to require employees to sign arbitration agreements, under certain circumstances.
Continue Reading Injunction Sought to Stop California’s Anti-Arbitration Law

Last week, a federal judge in the Eastern District of Michigan granted Domino’s Pizza, Inc.’s motion to dismiss, holding that workers operating under the Domino’s brand must arbitrate their claims that the pizza chain made its franchises promise not to hire each other’s employees, then misled the public to believe no such agreement existed.
Continue Reading Domino’s Franchise Workers Compelled to Arbitration Through Franchisee Agreements

In Cordúa Restaurants, Inc., 368 NLRB No. 43 (2019), the National Labor Relations Board issued its first major decision following the Supreme Court’s 2018 ruling in Epic Systems, addressing a number of issues of first impression and providing guidance on the permissible scope and implementation of class action waivers.  
Continue Reading The NLRB Issues Major Class Action Waiver/Mandatory Arbitration Ruling

The First Appellate District’s recent decision in Subcontracting Concepts, LLC v. DeMelo, A152205 (April 10, 2019) applies well-established unconscionability principles to an arbitration agreement signed by an employee of an independent contractor. The doctrine of unconscionability refers to an absence of meaningful choice with respect to the terms of a contract, usually the result of unequal bargaining power between the parties.
Continue Reading California First Appellate District Reminds Employers: Check Arbitration Provisions for Unconscionability

On April 10, 2019, the California Court of Appeals, Second District, in Diaz v. Sohnen Enterprises, 2019 S.O.S. 1722, ruled that an employee impliedly consents to an arbitration agreement by simply continuing to work, despite never signing the arbitration agreement and even outright rejecting it.
Continue Reading Court Rules: Continued Employment Supports Consent To Arbitrate

Each year, the California Chamber of Commerce identifies proposed state legislation that the Chamber believes “will decimate economic and job growth in California.”  The Chamber refers to these bills as “Job Killers.” In March, the Chamber identified the first two Job Killers of 2019: AB 51 and SB 1.
Continue Reading California Chamber of Commerce Identifies First “Job Killer” Bills of 2019