California Employment Law Update

Tag Archives: arbitration agreement

Is Arbitration Becoming “Just Somebody That We Used to Know”? — The Beginning of the End of Arbitration

When Congress passed and President Biden signed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (“the Act”) last year, we predicted it was just the beginning of an all-out federal assault on arbitration. We weren’t wrong – so far, there are additional bills pending in Congress to exempt age and race discrimination … Continue Reading

July 2023 California Employment Law Notes

We invite you to review our newly-posted July 2023 California Employment Law Notes, a comprehensive review of the latest and most significant developments in California employment law. The highlights include: Enforcement of PAGA Carve Out Suggests Need For New Revisions To Arbitration Agreements PAGA Debt Not Dischargeable in Bankruptcy Distributors Not Liable For Unpaid Wages Of … Continue Reading

$137 Million Racial Harassment Verdict Against Tesla Slashed by New Jury!

An astronomical $137 million jury verdict against Tesla has again been reduced, for a second (and potentially final) time. Last Monday, following a five-day trial on damages, a federal court jury awarded Owen Diaz, a former Tesla elevator operator, $175,000 in emotional distress damages and $3 million in punitive damages, totaling nearly $3.2 million—almost $134 … Continue Reading

March 2023 California Employment Law Notes

We invite you to review our newly-posted March 2023 California Employment Law Notes, a comprehensive review of the latest and most significant developments in California employment law. The highlights include: No Claim By Employee Who Was Friends With Alleged Harasser Pregnancy Discrimination Lawsuit Was Properly Dismissed Employer That Failed To Layoff Employee Before She Became … Continue Reading

No Arbitration Waiver Where Employer Answered Complaint And Engaged In Limited Discovery

Armstrong v. Michaels Stores, Inc., 59 F.4th 1011 (9th Cir. 2023) Teresa Armstrong executed an arbitration agreement with her employer Michaels Stores. After filing her claims in state court, Michaels answered, asserting its right to arbitration as an affirmative defense and removing the action to federal district court. The parties then submitted a joint case … Continue Reading

Ninth Circuit Strikes Down “Request Arbitration, Go To Jail” Law

Chamber of Commerce v. Bonta, 2023 WL 2013326 (9th Cir. 2023) A Ninth Circuit panel struck down California’s AB 51 (aka the Request Arbitration, Go to Jail Law). The law imposed civil and criminal penalties on employers that required employees to sign arbitration agreements. The same panel previously held that the Federal Arbitration Act (FAA) … Continue Reading

Court Compels Individual But Not Representative Claims To Arbitration

Piplack v. In-N-Out Burgers, 2023 WL 2384502 (Cal. Ct. App. 2023) In-N-Out Burgers appealed from the trial court’s denial of its motion to compel arbitration. The trial court denied the motion because In-N-Out’s arbitration agreement contained an unenforceable PAGA waiver. After the trial court’s ruling, the United States Supreme Court held in Viking River Cruises, … Continue Reading

Court Obliterates California’s Anti-Arbitration Law

Yesterday, a three-judge Ninth Circuit panel revisited its own 2021 order and finally struck down California’s anti-mandatory employment arbitration law, Assembly Bill 51 (“AB 51”).  In an opinion drafted by the former dissenting judge, Judge Sandra Ikuta, the new majority declared AB 51 was preempted by the Federal Arbitration Act (“FAA”). The statute in question, … Continue Reading

November 2022 California Employment Law Notes

We invite you to review our newly-posted November 2022 California Employment Law Notes, a comprehensive review of the latest and most significant developments in California employment law. The highlights include: Equal Pay Act Claim Should Not Have Been Dismissed Whistleblower Claim Should Not Have Been Dismissed In Part School District Employee May Have Been Discriminated … Continue Reading

Employer Waived Right To Arbitration By Failing To Timely Pay Arbitration Fees

Espinoza v. Superior Court, 83 Cal. App. 5th 761 (2022) Rosa M. Quincoza Espinoza sued her former employer, Centinela Skilled Nursing & Wellness Centre West, LLC, for discrimination and retaliation.  The employer filed a motion to stay the litigation and compel arbitration, invoking the terms of an arbitration agreement that Espinoza had signed.  After the … Continue Reading

Another Gargantuan California Verdict… This Time for $18.6 Million

A San Diego jury awarded that amount to a former employee who claimed he was wrongfully terminated based on his arrest record and then defamed. Michael Tilkey worked for Allstate Insurance for 30 years and was fired from his job as a field sales leader after he admitted to Allstate that he was arrested for domestic violence … Continue Reading

Multiple PAGA Representative Claims Crumble As Federal Courts Continue To Reject Iskanian and Enforce Arbitration Agreements Containing PAGA Waivers

When the California Supreme Court decided Iskanian v. CLS Transp. Los Angeles, LLC, 59 Cal. 4th 348 (2014), this June, some legal commentators assumed that employees could not waive pre-litigation claims under the Private Attorneys General Act (PAGA). Those assumptions may have been premature. As we noted here, at least one federal court refused to … Continue Reading

Second Circuit Reaffirms Enforceability of Arbitration Agreements Containing Collective Action Waivers In Two FLSA Cases

Two recent decisions from the U.S. Court of Appeals for the Second Circuit have reaffirmed the enforceability of employment-related arbitration agreements containing class action waivers. In Sutherland v. Ernst & Young and Raniere v. Citigroup, Inc. the Second Circuit held that the Federal Arbitration Act (FAA) requires courts to enforce a valid agreement to arbitrate … Continue Reading

State Limitations On Arbitration Agreements Are Preempted By Federal Law

AT&T Mobility v. Concepcion, 131 S. Ct. 1740 (2011) In this landmark new opinion, the United States Supreme Court held that the Federal Arbitration Act (“FAA”) prohibits states from conditioning the enforceability of an arbitration agreement on the availability of class action arbitration procedures. Although this case arose in the consumer context (it involved AT&T’s … Continue Reading
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