Ninth Circuit Upholds Portions of California Law Prohibiting Use of Mandatory Arbitration Agreements

In a split 2-1 decision that likely raises more questions than it answers, the Ninth Circuit Court of Appeals cast some doubt upon the ability of employers to implement mandatory arbitration agreements with their employees. In Chamber of Commerce of the United States of America v. Bonta, the Ninth Circuit upheld portions of California Labor Code section 432.6, which prohibits employers from making arbitration agreements a condition of employment and imposes significant criminal and civil sanctions for violations. The Ninth Circuit’s decision holds that arbitration agreements signed by parties remain enforceable (even if they violate section 432.6), while parties who refused to sign an arbitration agreement may still seek a remedy against the employer under the statute.

Ninth Circuit Upholds Federal Preemption of California’s Meal and Rest Break Laws for Interstate Commercial Drivers

In one of the year’s most anticipated court decisions for the trucking industry, International Brotherhood of Teamsters, Local 2785, et al. v. Federal Motor Carrier Safety Administration, No. 19-70413 (January 15, 2021), the U.S. Court of Appeals for the Ninth Circuit upheld a Federal Motor Carrier Safety Administration (FMCSA) ruling that federal rest break regulations preempted California’s meal and rest break rules, as applied to drivers of property-carrying commercial motor vehicles.

How the CARES Act Will Help Universities Combat the New Rise of COVID-19 Class Actions

Universities continue to see a rise of COVID-19-related class action lawsuits alleging that campus closures deny students the full benefits of an on-campus college experience. This new wave of class action lawsuits generally seek full refunds for tuition, room and boarding costs, and other matriculation fees based on a breach of contract theory and claims of unjust enrichment. Many colleges and universities have already taken proactive measures that will help defend against these lawsuits. Some institutions implemented policies to refund student monies or apply room and boarding fees for the impacted term of enrollment toward future enrollment periods. For universities that have not taken these measures, the Coronavirus Aid, Relief, and Economic Security (CARES) Act may provide a potential, unintended defense to a class action.

California’s AB 5 Enjoined as to Motor Carriers; Federal Court Enters Preliminary Injunction on FAAAA Preemption Claim

On January 16, 2020, the U.S. District Court for the Southern District of California entered an order granting a preliminary injunction requested by the California Trucking Association (CTA), which was represented by Ogletree Deakins shareholders Robert R. Roginson, Alexander M. Chemers, and Spencer C. Skeen, in a matter challenging Assembly Bill (AB) 5 as to motor carriers operating in California.

California Court Delivers Trucking Company a Meal/Rest Break Win and Limits the Application of the ABC Test

The U.S. District Court for the Eastern District of California recently ruled in an employment class action regarding misclassification of trucking industry owner-operators as independent contractors. The ruling is a win for numerous industries.

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.

Two California Appellate Decisions Expand the Scope of Tameny Claims Based on Whistleblower Laws

In the most recent case, the employee, Linda Ferrick, worked for Santa Clara University as a senior administrator in the university’s real estate department. Ferrick alleged that the director of the department, Nick Travis, engaged in extensive wrongdoing, including embezzling funds, engaging in kickback schemes, and evading taxes (among other misconduct). In August 2011, Ferrick allegedly reported Travis’ wrongdoing to the university’s director of finance, the risk manager, and the budget director.

Who Decides the Issue of Class Arbitration?

Two districts of the California Court of Appeal recently issued significant decisions on arbitration agreements. In a published case, the Fourth Appellate District of the California Court of Appeal held that if the arbitration agreement is silent on whether the agreement allows for class or representative arbitration, then courts should decide the gateway issue of whether class arbitration is allowed. In the second unpublished decision, the Second Appellate District of the California Court of Appeal held that the issue of class arbitration was for the arbitrator to decide.

California Court Determines Arbitrator Must Decide Whether Class Claims Are Subject to Arbitration Agreement

When an employee who has signed an arbitration agreement files a lawsuit alleging individual claims along with class action claims, and the trial court has ordered him to take his individual claims to arbitration, what happens to the class claims? A California appellate court recently addressed that question in a…..

California Supreme Court: Undocumented Worker May Recover Lost Wages for Period Up to Employer’s Discovery of Immigration Status

Salas v. Sierra Chemical Co., S196568 (June 26, 2014): On June 26, the California Supreme Court issued a decision holding that federal immigration law does not preempt a California law that extends state law protections to all workers regardless of their immigration status. However, the court held that federal law does preempt state law on