Arbitration and Alternative Dispute Resolution Archives

California Supreme Court Decides Unfair Competition Claims for Civil Penalties Should Be Tried by a Court Rather Than a Jury

On April 30, 2020, the Supreme Court of California issued its decision in Nationwide Biweekly Administration, Inc. v. Superior Court of Alameda County, a case that received a fair amount of attention in 2019 when it seemed possible the court might allow claims under California Business & Professions Code Sections 17200 et seq. and 17500 et seq. (commonly called the unfair competition law (UCL)) to be tried by jury.

Kyle A. Wende Sacramento Author

Catherine L. Hazany Torrance Author

USMCA Preview: Alternative Methods of Dispute and Temporary Relief for Vehicle and Light Truck Producers

After more than two years of deliberation, the United States-Mexico-Canada Agreement [T-MAC in Mexico] will enter into force on July 1, 2020. The three-nation agreement includes a key element employers may want to take note of—employers and unions will be able to negotiate disputes through alternative methods of dispute resolution.

Pietro Straulino-Rodriguez Mexico City Author

Employer’s Signature May Not Be Essential to Enforceability of Arbitration Agreement

The Court of Appeals for the First District of Texas recently held that the absence of the employer’s signature from an arbitration agreement did not render that agreement unenforceable. SK Plymouth, LLC v. Simmons, No. 01-19-00433-CV (April 16, 2020). Central to the court’s holding was the absence of any language in the arbitration agreement indicating that the employer’s signature was a condition precedent to the enforcement of the agreement.

Arnoldo (A.J.) Rodriguez San Antonio Author

California Worker’s Claim for Individual Damages in LWDA Filing Held Not Dispositive in Motion to Compel Arbitration Inquiry

Although the Supreme Court of the United States has not yet taken up the issue, California courts routinely hold an employee cannot be compelled to submit to arbitration an action seeking penalties under the Private Attorneys General Act of 2004 (PAGA), although the employee may be compelled to arbitrate his or her individual wage claims. In determining whether a litigant seeks individual damages and therefore may be compelled to arbitrate wage claims, does the plaintiff’s Labor and Workforce Development Agency (LWDA) notice letter control?

Melis Atalay Los Angeles Author

The Who, What, and When on Illinois Employment Agreements Under the Workplace Transparency Act

The Illinois Workplace Transparency Act (WTA) (Public Act 101-0221) is designed to protect employees, consultants, and contractors who truthfully report alleged unlawful discrimination and harassment or criminal conduct in the workplace by prohibiting nonnegotiable confidentiality obligations, waivers, and mandatory arbitration of allegations of discrimination, harassment, or retaliation.

Colleen G. DeRosa Chicago Author

Cyle R. Catlett Chicago Author

Ohio Appellate Court Finds Overly Broad Arbitration Agreement Unenforceable

In Thomas v. Hyundai of Bedford, No. 108212 (January 23, 2020), the Eighth District Ohio Court of Appeals held that an arbitration clause in an employment contract was substantively and procedurally unconscionable because it sought to include as arbitrable all conceivable claims between the parties, even those outside the employment relationship. The Eighth District’s decision serves as a reminder of the benefits of well-tailored arbitration agreements.

Bruce G. Hearey Cleveland Author

Samuel H. Ottinger Cleveland Author

Maine Legislature Takes Aim at Nondisclosure Agreements

After passing more than 500 bills in 2019, including those mandating paid leave and placing limits on noncompete agreements, the Maine Legislature reconvened on January 8, 2020, and directed its attention to nondisclosure agreements.

Steven Silver Portland (ME) Author

AB 51 Update: Court Continues TRO on California’s Arbitration Statute

Assembly Bill (AB) 51, which attempts to ban certain mandatory arbitration agreements, was scheduled to go into effect on January 1, 2020. However, a coalition of business organizations filed a suit on December 9, 2019 seeking to enjoin AB 51.

Paul M. Smith Sacramento Author

Daniel E. Richardson Sacramento Author

Arbitration Decisions Matter: The NLRB Reverts to Prior Standards on Deferral to Arbitration and Pre-Arbitration Settlements

Arbitration is a strongly favored federal policy and generally can be relied on to resolve even statutory discrimination claims. This is not a novel concept in federal jurisprudence from the Supreme Court of the United States down (although California and the Obama-era National Labor Relations Board (NLRB) have and had a different view).

Charles E. Engeman St. Thomas Author

AB 51 Enjoined at the Last Minute: Court Issues TRO on California’s Arbitration Statute

As discussed in our prior article, California recently enacted Assembly Bill (AB) 51, a law that attempts to ban certain mandatory employment arbitration agreements in the state.

Christopher C. Murray Indianapolis Author

Danielle Ochs San Francisco Author

Hera S. Arsen, Ph.D. Torrance Author

Eleventh Circuit Limits Reach of Arbitration Agreements, Finds “Pay Your Own Fees” Clause Unenforceable

On November 22, 2019, the United States Court of Appeals for the Eleventh Circuit, the court with jurisdiction over Alabama, Florida, and Georgia, handed down a decision that invalidates certain provisions in arbitration agreements in Fair Labor Standards Act (FLSA) wage and hour cases.

Edmund J. McKenna Tampa Author

False Alarm? The Practical Impact of AB 51, California’s New Anti-Arbitration Statute

On October 10, 2019, California Governor Gavin Newsom signed into law a state statute purporting to prohibit employers from requiring employees to enter into certain types of arbitration agreements. This new law is creating significant uncertainty and anxiety among employers. What is the practical impact of AB 51 in light of its possible preemption by the Federal Arbitration Act (FAA) and other potential challenges to its limits on arbitration?

Christopher C. Murray Indianapolis Author

Danielle Ochs San Francisco Author

Answers to 10 Questions About California’s Ban on Mandatory Arbitration of Statutory Employment Claims

California is set to become the only state to outlaw predispute mandatory arbitration of statutory employment claims. On October 10, 2019, Governor Gavin Newsom signed California Assembly Bill (AB) 51, which prohibits employers from requiring employees to arbitrate claims arising under the California Fair Employment and Housing Act (FEHA) and related employment statutes.

Danielle Ochs San Francisco Author

Chambord V. Benton-Hayes Sacramento
San Francisco Author

Arizona Municipalities Retain Authority to Enact Benefits Ordinances After State High Court Denies Review

In February 2019, the Arizona Court of Appeals, Division One ruled that the Arizona State Legislature overstepped its authority in 2016, when it prohibited Arizona cities and other municipalities from enacting their own employee benefits ordinances. On August 27, 2019, the Arizona Supreme Court denied review of the Court of Appeals decision.

Tibor Nagy Jr. Tucson
Phoenix Author

NLRB Clarifies Use of Mandatory Arbitration Post-Epic Systems

On August 14, 2019, the National Labor Relations Board (NLRB) issued a ruling clarifying several mandatory arbitration issues following the 2018 decision by the Supreme Court of the United States in Epic Systems Corp. v. Lewis.

Christopher C. Murray Indianapolis Author

The Beginning of the End for 401(k) Class Actions? Ninth Circuit Enforces Individual Arbitration

In Dorman v. Charles Schwab Corp., No. 18-15281 (August 20, 2019), the Ninth Circuit Court of Appeals recently held that a 401(k) plan participant was required to individually arbitrate his claims regarding the plan’s fees and investment options, pursuant to the plan’s arbitration provision.

Mark E. Schmidtke Chicago
Indianapolis
Valparaiso Author

Madeline Chimento Rea New Orleans Author

Stephanie C. Ng Houston Author

Fifth Circuit Rules that Courts, Not Arbitrators, Decide “Gateway Issue” of Class Arbitrability

In 20/20 Communications, Inc. v. Crawford, the U.S. Court of Appeals for the Fifth Circuit recently ruled that the question of whether a dispute can be arbitrated on a class-wide basis is a threshold issue that is presumptively for a court, not an arbitrator, to decide. This is the latest in a series of decisions by the Supreme Court of the United States and courts of appeals in favor of arbitration agreements that waive class procedures.

Jeremy W. Hays Dallas Author

Washington State Takes on the Arbitration of Harassment and Discrimination Claims

Like many other states, Washington recently adopted legislation seemingly preventing the arbitration of harassment and discrimination claims in direct response to the #MeToo movement.

FAA Preempts New York’s Prohibition on Arbitration of Sexual Harassment Suits

In response to the #MeToo movement, a number of states have adopted legislation addressing sexual harassment claims. These include Maryland, New Jersey, New York, and Washington. Some of these state statutes attempt to ban or restrict arbitration for sexual harassment claims.

Joseph B. Cartafalsa New York City Author

Christopher C. Murray Indianapolis Author

New Jersey Bars Nondisclosure Agreements in All Discrimination Settlements, Purports to Bar Arbitration Agreements

On March 18, 2019, Governor Phil Murphy signed into law Senate Bill 121 (S121), which amends the New Jersey Law Against Discrimination (NJLAD) in two important respects, effective immediately.

Peter O. Hughes Morristown Author

Michael Nacchio Morristown Author

Fifth Circuit Rules No Notice of Collective Actions for Employees With Arbitration Agreements

The U.S. Court of Appeals for the Fifth Circuit Court recently issued an opinion with major implications in In re: JPMorgan Chase & Company that impacts collective actions under the Fair Labor Standards Act (FLSA).

Jeremy W. Hays Dallas Author

California Court Invalidates Arbitration Agreement With PAGA Waiver

In an unpublished decision, the California Court of Appeal, Third Appellate District denied an employer’s motion to compel arbitration of a former employee’s Private Attorneys General Act (PAGA) claims.

Jennifer L. Santa Maria San Diego Author

Supreme Court of the United States Upholds Bar to Arbitration for Interstate Driver

On January 15, 2019, the Supreme Court of the United States held that the Federal Arbitration Act (FAA) did not apply to wage claims brought by an interstate truck driver, even though the plaintiff was classified as an independent contractor.

Alexander M. Chemers Los Angeles Author

Robert R. Roginson Los Angeles Author

Supreme Court Concludes “Wholly Groundless” Exception Is Inconsistent With Federal Arbitration Act

On January 8, 2019, the Supreme Court of the United States decided whether courts may disregard contractual language calling for an arbitrator to decide questions of arbitrability if the argument that the arbitration agreement applies to the particular dispute is “wholly groundless.” The Court ruled that a “wholly groundless” exception is inconsistent with the Federal Arbitration Act (FAA), and courts are not free to override the terms of parties’ agreements to arbitrate.

Robert M. Shea Boston Author

Missouri Supreme Court Gives Early Holiday Present to Easter Seals

It’s time for our annual holiday season blog on the status of arbitration agreement enforceability in Missouri.

James M. Paul St. Louis Author

Andrew L. Metcalf St. Louis Author

Seventh Circuit Joins Sister Circuits in Holding That Courts, not Arbitrators, Should Decide the Availability of Class Arbitration

In a matter of first impression before the Seventh Circuit Court of Appeals involving an issue left open by the Supreme Court of the United States, a Seventh Circuit panel issued an opinion on a key threshold question of class arbitrability. The question was who decides—a court or an arbitrator—whether arbitration can proceed on a class or collective basis.

Spencer C. Skeen San Diego Author

Jesse C. Ferrantella San Diego Author

Arbitration Agreements for Independent Contractors in the Transportation Industry Under Fire

The oral arguments on October 3, 2018, before the Supreme Court of the United States in New Prime, Inc. v. Oliveira have created waves of uncertainty in the transportation industry about the enforceability of arbitration agreements.

Kentucky Supreme Court Rules FAA Does Not Protect Mandatory Employment Arbitration

In a surprise decision, the Supreme Court of Kentucky ruled on September 27, 2018, that the Federal Arbitration Act (FAA) does not protect employment arbitration agreements that are required as a condition of employment.

Christopher C. Murray Indianapolis Author

Washington State Governor Issues Executive Order Discouraging Arbitration Agreements and Class Action Waivers for Government Contractors

On June 12, 2018, Washington State Governor Jay Inslee issued an executive order that directs Washington agencies to favor government contractors that do not require employees to submit to individual arbitration of claims.

Kyle D. Nelson Seattle Author

Adam T. Pankratz Seattle Author

Virgin Islands Supreme Court Confirms Applicability of FAA and Issues Guidance on Arbitration Agreements

In Whyte v. Bockino, No. 2017-0024 (August 29, 2018), the Supreme Court of the United States Virgin Islands held that the Federal Arbitration Act (FAA) applies to contracts in the Virgin Islands and concluded that the claims of a former employee were arbitrable.

Simone R.D. Francis St. Thomas
New York City Author

Sofia L. Mitchell St. Thomas Author

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