Photo of Noemi Blasutta

Noemi A. Blasutta is an associate in the Litigation Department.

Breaking with the National Labor Relations Board’s ruling that arbitration agreements containing class waivers can violate federal labor law, the California Court of Appeal recently held that an arbitration agreement precluding class arbitration was not unconscionable, nor would enforcing it violate California state law, federal law or public policy.

Deleon, a former retail sales representative for Verizon Wireless, filed suit on behalf of himself and other aggrieved employees seeking civil penalties under the Labor Code Private Attorneys General Act of 2004 (Lab. Code, § 2698 et seq.) for violation of Labor Code section 223, which prohibits the secret underpayment of wages.

Deleon’s compensation plan included commission payments, which Verizon could recover (or “charge