News & Analysis as of

Class Action Employment Contract

A class action is a type of legal action where a representative individual or group of individuals can bring a claim on behalf of a larger group or class who share a common legal interest.
Bennett Jones LLP

No Common Employer Means No Class Action—Ontario Court of Appeal

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The Ontario Court of Appeal has concluded that a client's influence over a service provider's processes does not establish an employment relationship between the client and the service provider's employees. The plaintiffs in...more

CDF Labor Law LLP

Unconscionable Employment Terms In Onboarding Documents Can Void Arbitration Agreements

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On June 13, 2025, a California Court of Appeal struck down an arbitration agreement because of unconscionable terms entered by the parties in a separate employment agreement, governing different dispute resolution fora and...more

Fisher Phillips

California Court Holds that Prospectively Signed Meal Period Waivers are Enforceable: 4 Steps You Can Take to Maximize Your...

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The California Court of Appeal just handed employers a wage and hour win by ruling that meal period waivers prospectively signed by non-exempt employees are enforceable if certain criteria are met. The April 21 decision in...more

Offit Kurman

Key Trends in PAGA Arbitration Decisions: Insights for Employers and Legal Counsel

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The proliferation of wage and hour litigation in California and recent significant changes to the law have created uncertainty for employers and their lawyers alike. Both recent PAGA (Private Attorneys General Act of 2004)...more

Ervin Cohen & Jessup LLP

Another Day, Another Dispute Between Appellate Courts Over Employment Arbitrations

The case of Parra Rodriguez v. Packers Sanitation Services LTD., LLC typifies the reason employers and employment counsel must stay on top of arbitration case developments....more

Bennett Jones LLP

BC Court of Appeal Confirms “No hire” Clause Not Intended to Injure Employees

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In Latifi v The TDL Group Corp., 2025 BCCA 45, (Latifi) the BC Court of Appeal upheld the summary dismissal of a proposed class action against the Tim Hortons franchisor in Canada. The underlying dispute between the...more

Sheppard Mullin Richter & Hampton LLP

Plaintiffs, Not Defendants, Must Initiate Arbitration

Arzate v. Ace American Insurance Company, — Cal. Rptr. 3d — (2025) began as a familiar case: plaintiffs signed arbitration agreements (“Agreement”) with their employer that contained a class action waiver. But when a dispute...more

CDF Labor Law LLP

Employer Not Required to Initiate Arbitration Following Court-Ordered Arbitration

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The California Court of Appeal, Second Appellate District recently issued a clarifying decision in Michelle Arzate, et al. v. ACE American Insurance Company, addressing which party is responsible for initiating arbitration...more

ArentFox Schiff

Arzate v. ACE American Insurance Company: Employer Not Required to Initiate Arbitration in Defense of Itself

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On June 18, 2021, a group of ACE American Insurance Company employees filed a class action suit alleging that ACE misclassified them as exempt employees....more

Seyfarth Shaw LLP

Plaintiffs Are Responsible for Commencing Court-Ordered Arbitration

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The California Court of Appeal held that after the employer-defendant successfully moved to compel arbitration of the plaintiffs’ employment-related claims, the employer-defendant did not waive its right to arbitration by...more

Morgan Lewis

Washington Supreme Court Clarifies Limits on Employers’ Anti-Moonlighting Agreements

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The Supreme Court for the State of Washington issued a decision in David v. Freedom Vans LLC expanding the state’s prohibition against anti-moonlighting covenants for low-wage workers. The court held that employers may not...more

Vedder Price

Federal District Court Says Class and Collective Action Waiver Survives Unenforceable Arbitration Agreement

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On February 12, 2025, the U.S. District Court for the District of Oregon issued an important decision in Porteous v. Flowers Foods, Inc. regarding the enforceability of class and collective action waivers contained in...more

Jackson Lewis P.C.

[Event] Workplace Horizons 2025 - April 30th - May 2nd, New York, NY

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The leading educational and networking conference — from the premier firm for employment + labor law - Join us at Workplace Horizons 2025, where attorneys, in-house counsel and HR leaders come together to share and solve...more

Carlton Fields

Eleventh Circuit Holds Arbitration Agreement Unenforceable Against Spouse of Former Employee

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In Lubin v. Starbucks Corp., the Eleventh Circuit Court of Appeals considered defendant Starbucks’ appeal of an order denying its motion to compel arbitration of the plaintiffs’ lawsuit alleging that Starbucks sent deficient...more

Sheppard Mullin Richter & Hampton LLP

PAGA Plaintiffs Cannot Avoid Arbitration by Bringing a “Headless PAGA Lawsuit”

California’s Private Attorneys General Act (PAGA) allows “aggrieved employees” to sue their employers for Labor Code violations to collect civil penalties “on behalf of himself or herself and other current or former...more

Proskauer - California Employment Law

You Can’t Spell “Aggrieved Employees” Without an “I”: PAGA Claims Cannot be Headless

In yet another attempt to avoid arbitration agreements, plaintiffs’ lawyers in the wake of the blockbuster court decisions in Viking River Cruises, Inc. v. Moriana and Adolph v. Uber Technologies, Inc. began filing so-called...more

Seyfarth Shaw LLP

Arbitration Agreement Enforceable By Non-Signatory Alleged Joint-Employers

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Employees who sign an arbitration agreement with one company cannot avoid arbitration with related defendant-companies by arguing they were not parties to the agreement. The California Court of Appeal held that claims against...more

Lewitt Hackman

Beyond the Contract: Non-Signatories to an Arbitration Agreement Can Compel Arbitration

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Departing from the ruling in Soltero v. Precise Distribution earlier this year, the California Court of Appeal in the Second District in Gonzalez v. Nowhere Beverly Hills LLC, created a split of authority regarding an alleged...more

Jackson Lewis P.C.

New Jersey High Court’s Weichert Decision: Why Employers Should Review Their Independent Contractor Agreements Now

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New Jersey’s highest court has held that an agreement between a real estate brokerage and a real estate salesperson identifying the salesperson as an independent contractor excludes the salesperson from the New Jersey Wage...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

California Appeals Court Finds Employer’s Arbitration Agreement With Cost-Sharing and Out-of-State Law Provisions Unconscionable

In a recent ruling, a California appeals court found an arbitration agreement with an eyewear store employee that was presented on a take-it-or-leave-it basis required an arbitrator to apply the laws of another state,...more

Schwabe, Williamson & Wyatt PC

FTC Sued to Overturn Ban on Noncompetes

The United States Chamber of Commerce and other trade groups sued the Federal Trade Commission in the United States District Court for the Eastern District of Texas on April 24, in Chamber Of Commerce Of The United States Of...more

Littler

Ninth Circuit: “Transportation Exemption” Does Not Apply to Arbitration Clauses Between Corporate Entities or in Commercial...

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Two days before the United States Supreme Court ruled in Bissonnette v. LePage Bakeries Park St., LLC, that the Federal Arbitration Act’s (FAA) transportation worker exemption (meaning the FAA would not apply) extends beyond...more

Epstein Becker & Green

The Enforceability of Employees’ Electronic Signatures Is the Next Battleground for Arbitration Agreements With Class Action...

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Here’s a question you likely have never considered: Are hackers overseas infiltrating employers’ computer systems just to sign arbitration agreements with class action waivers for random employees?...more

Troutman Pepper Locke

Seventh Circuit Revives McDonald's Employee No-Poach Litigation

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In June of 2022, McDonald’s obtained a judgment on the pleadings, ending antitrust litigation challenging the legality of the no-hire restraints it previously included in its franchise agreements. More than a year later, the...more

Epstein Becker & Green

Should Employers Implement Arbitration Agreements with Class and Collective Action Waivers? The Pros and the Cons

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For more than a few years — at least since the United States Supreme Court’s seminal 2017 decision in Epic Systems v. Lewis — employers across the country have weighed whether to have their employees sign arbitration...more

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