Can you require your workers to arbitrate claims? What if they work in interstate commerce? Recently several courts have addressed the scope of the Federal Arbitration Act (FAA) and when it applies to arbitration agreements included in employment contracts. Typically, courts have held that the FAA compels employees to pursue certain disputes before a private
Arbitration
Wave Goodbye to Waivers Under California’s PAGA? Not So Fast, Says the Supreme Court
California is complicated for employers — and a recent case, Viking River Cruises, Inc. v. Moriana, is just one more example.
The Private Attorneys General Act of 2004 (PAGA) authorized California employees to sue employers for violations of California’s labor code. An individual can bring an action on behalf of himself or herself and…
SCOTUS Smacks Down “Bespoke” Arbitration-Preferring Rules, Does Away with Prejudice Requirement in Waiver Analysis
If you have an arbitration agreement, do you have to compel arbitration when the lawsuit is filed or can you wait awhile? This week, the Supreme Court concluded that a party litigating in federal court cannot later compel arbitration by arguing that the delay caused no harm or prejudice to the opposing party. If you…
Blocking the Gate to Arbitrate: Congress Passes Law Banning Pre-Dispute Arbitration Agreements on Sex Harassment Claims
Both the House and Senate have approved a bill that allows victims of workplace sexual assault and sexual harassment to take their claims to court instead of being forced to arbitration. In a rare show of bipartisanship, Congress passed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021. As of right…
National Labor Relations Board Reverses Another Obama-Era Labor Board Ruling and Reinstates Historical Deferral Doctrine
The National Labor Relations Board in recent weeks has continued to overturn Board decisions from President Obama’s administration. In United Parcel Service, Inc., the current Republican-controlled Board returned to a long-standing legal standard for “deferring” unfair labor practices to private arbitration.
The Issue
Often when workers are disciplined, whether in a union or nonunion setting,…
No Hate to Arbitrate? EEOC Changes Stance on Arbitration Agreements
Can you require employees to sign arbitration agreements? After more than 20 years of saying no, the EEOC has reversed its policy and says you can.
Background
In 1997 the EEOC issued the Policy Statement on Mandatory Binding Arbitration of Employment Discrimination Disputes as a Condition of Employment (the Policy Statement), setting forth its position.…
Never Too Late to Arbitrate? Tips on Getting Your Agreement On
Do your employees sign arbitration agreements? If so, do your arbitration agreements prevent employees from joining class actions against your company? Does your company want to start requiring arbitration agreements? If “yes” is the answer to any of these questions, some recent court decisions raise a few issues to keep in mind.
Let’s first take…
New Waive? NLRB Allows Revised Arbitration Agreements After Collective Action
Last week, the National Labor Relations Board (NLRB) issued a decision in Cordúa Restaurants, Inc., that permits employers to create and enforce arbitration agreements with collective waivers in direct response to Fair Labor Standards Act (FLSA) collective actions filed by employees. The NLRB also found that warning employees of discharge for failure to agree…
Cooperate or Pay: Recovering Attorneys’ Fees to Get to Arbitration
Does your arbitration agreement allow you to recover attorneys’ fees if the employee rebels against arbitration and you have to compel it? Maybe it should. In Aralar v. Scott McRea Automotive Group, a court in Florida recently affirmed an arbitrator’s award of nearly $20,000 in attorney’s fees for the defendant’s hassle of moving for…
Does This Arbitration Agreement Make Me Look Sexist? The Moving Target of Using Arbitration Clauses
The Supreme Court Says Yes to Arbitration and Class Action Waivers
With its 5-4 ruling in Epic Systems Corp. v. Lewis, the Supreme Court delivered a seemingly big win for employers. The Supreme Court held that employees’ waiver of their rights to bring collective or class actions, as a term of an arbitration agreement,…