Category: Arbitration: Employment

Arbitration, Waiver: Waiver Of The Right To Arbitrate Requires A Showing Of Prejudice Under California Law

The California Supreme Court And SCOTUS Disagree About Waiver Of The Right To Arbitrate.     In Quach v. Cal. Commerce Club, B310458 (2/1  5/10/22 ) (Bendix, Rothschild; Crandall sitting by designation, conc. and dsst.), Justice Bendix, writing the majority opinion, explained that California Commerce Club had not waived its right to arbitrate, despite the […]

Employment, Legislation, FAA Preemption: Can California Protect Employees From Mandatory Pre-Dispute Arbitration Agreements And Avoid Federal Preemption?

Paul Dubow And Marc Alexander Have Published An Article About FAA Preemption And California's AB 51.         The article, entitled Can California Protect Employees From Entering Into Mandatory Pre-Dispute Arbitration Agreements?, appears in California Litigation, Vol. 34, No. 3 (2021). Paul Dubow is a seasoned mediator and arbitrator in the Bay Area, and Marc Alexander […]

Arbitration, Enforceability, Employment: Ninth Circuit Holds Arbitration Agreement Enforceable Against Farm Worker Because No Economic Duress

Just Following The Law, Or Gaslighting?         Farmworker Martinez-Gonzalez, on behalf of himself and other employees, brought a wage and hour lawsuit against a farm labor contractor and a grower. The district court held that defendants could not enforce an arbitration agreement, because the employee had signed under economic duress or undue influence. […]

Arbitration: Fourth District Div. 2 Addresses Issues Of Unconscionability, Delegation, Severability, And Fraud In Employee Arbitration Agreement

Ineffective Delegation Clauses, Fraud In The Execution, And Unconsciconability Result In Reversals.         In Najarro v. Sup. Ct. of the County of San Bernardino; Horizon Personnel Services Inc., et al, E076328   (4/2  10/22/21) (Raphael, Codrington, Slough), the court does plenty of slicing and dicing, because there  are two arbitration agreements, two sets of employees, […]

Employment Arbitration: AAJ Reports Employees Won 1.6% Of Cases Against Employers In Arbitration Last Year

October 27, 2021 · Arbitration: Employment

Mandatory Pre-Dispute Arbitration Provisions Are At Issue.         Abha Bhattarai, National Retail Reporter for  the Washington Post, reports that 1.6% of employees won in arbitration against employers last year.  See "As closed-door arbitration soared last year, workers won cases against employers just 1.6 percent of the time" (October 27, 2021).          This statement is based […]

Arbitration, FAA Preemption: Ninth Circuit Holds Federal Arbitration Act Does Not Preempt AB 51, Which Forbids Employers From Requiring Arbitration As Condition Of Employment

Judge Sandra S. Ikuta Dissents.         Section 432.6 of the California Labor Code, which was added by AB 51, forbids employers from requiring an arbitration agreement as a condition of employment, or threatening to retaliate against an employee for refusing to sign an arbitration agreement. A Ninth Circuit panel, by a two person majority, holds […]

Arbitration, Employment, Choice Of Law, FAA: Second Dist., Div. 7 Holds Choice Of California Law Incorporates Substantive Law But Not Procedural Limitations On Arbitration In Contract Governed By FAA

Parties Could Have Specifically Incorporated Arbitration Limitations In California Labor Code Instead Of Generally Choosing California Law — In Theory.         California Labor Code §229 provides, in part, that actions to collect due and unpaid wages may be maintained without regard to the existence of any private agreement to arbitrate. And parties to an employment […]

Arbitration, FAA, Employment: Ninth Circuit Agrees Uber Workers Are Subject To Mandatory Arbitration

Uber Workers Are Not  Engaged In Interstate Commerce Says The Court.         Can Uber compel mandatory arbitration of disputes with its drivers? To answer this question, the Ninth Circuit in Capriole v. Uber Technologies, No. 20-16030 (9th Cir.  8/2/21) (Wardlaw, Nguyen, Eaton) had to confront whether Uber drivers are exempt from Federal Arbitration Act requirements […]

Arbitration, Authentication, Standard Of Review, Employment: First District Div. 5 Agrees That Employer Failed To Authenticate Electronic Signature On Arbitration Agreement

Authentication Of Electronic Signatures Continues To Trip Up Employers.         The trial court denied the employer's motion to compel arbitration, because the employee Bannister "presented evidence that she never saw the [arbitration] agreement during the  onboarding process and did not affix her  electronic signature to it," and the  Court of Appeal affirmed. Maureen Bannister v. […]