News & Analysis as of

Federal Arbitration Act California Preemption

The Federal Arbitration Act is a United States federal statute enacted in 1925 that governs arbitration in contracts implicating interstate commerce. The Act applies in both federal and state courts. 
Hogan Lovells

New California statute raises questions for consumer arbitration provisions, but the spectre of potential federal preemption looms...

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California Senate Bill No. 940, which became effective January 1, 2025, places significant restrictions on arbitration provisions affecting California consumers. Under the law, consumers may void contractual provisions that...more

Sheppard Mullin Richter & Hampton LLP

Choice-of-Law Provisions Cannot Circumvent Ending Forced Arbitration Act, Court of Appeal Rules

On February 3, 2025, the California First District Court of Appeal held that a party to an arbitration agreement cannot rely on a choice-of-law provision to wire around the federal Ending Forced Arbitration of Sexual Assault...more

Troutman Pepper Locke

Will the California Supreme Court Finally Curtail the State’s Historic Hostility to Arbitration?

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California is famously inhospitable to arbitration. In fact, the U.S. Supreme Court struck down California laws disfavoring arbitration on no fewer than six occasions between 1987 and 2022....more

Polsinelli

Mandatory Arbitration Agreements Remain Valid in California

Polsinelli on

California employers received welcome reassurance last week that they are free to require employees enter into arbitration agreements as a condition of employment. This is the result of an opinion from the Ninth Circuit last...more

Stradling Yocca Carlson & Rauth

All For Naught: California Employers Can Continue To Require Workers to Sign Arbitration Agreements

After more than three years of legal challenges, California’s Assembly Bill 51 was completely struck down as preempted by the Federal Arbitration Act in a Ninth Circuit ruling on February 15, 2023. California employers can...more

McDermott Will & Emery

Ninth Circuit Holds That California AB 51 Is Preempted by the FAA

McDermott Will & Emery on

As of February 15, 2023, employers in California may once again require mandatory arbitration as the US Court of Appeals for the Ninth Circuit held that the Federal Arbitration Act (FAA) preempts Assembly Bill 51 (AB 51), a...more

Fisher Phillips

Federal Appeals Court Blocks California’s Ban on Mandatory Arbitration Agreements: 7 Key Takeaways for Employers

Fisher Phillips on

A federal appeals court just paved the way for California employers to continue utilizing mandatory arbitration agreements with employees and job applicants. You may be familiar with the litigation roller coaster of...more

Jones Day

Supreme Court Upholds Representative Action Waivers In Employee Arbitration Agreements

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Case Overview - On June 15, 2022, the United States Supreme Court issued its decision in Viking River Cruises, Inc. v. Moriana, No. 20-1573. The Court held that the rule from Iskanian v. CLS Transportation Los Angeles,...more

Proskauer - California Employment Law

The U.S. Supreme Court Says PAGA Representative Action Waivers Are Enforceable After All

On June 15, 2022, in Viking River Cruises, Inc. v. Moriana, Case No. 20-1573,_ U.S. _ (2022), by an 8-1 majority, the U.S. States Supreme Court held that the Federal Arbitration Act (“FAA”) preempts the California Supreme...more

Littler

Supreme Court Permits Arbitration of Individual PAGA Claims

Littler on

The United States Supreme Court’s decision in Viking River Cruises v. Moriana will dramatically impact employers’ rights to enforce arbitration agreements related to claims under California’s Private Attorneys General Act...more

CDF Labor Law LLP

US Supreme Court Raids California’s PAGA Jurisprudence in Viking River

CDF Labor Law LLP on

Wednesday, the United States Supreme Court issued a highly anticipated decision in Viking River Cruises v. Moriana.  The decision addresses the apparent conflict between the Federal Arbitration Act (FAA) and California’s...more

FordHarrison

California Employers Receive a Big Win with SCOTUS PAGA Decision

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Executive Summary: In a stunning 8-1 decision that is expected to reverberate throughout the entire California business community, the United States Supreme Court on June 15, 2022 held that a state court ruling, which...more

Polsinelli

U.S. Supreme Court Holds That The Federal Arbitration Act Preempts California’s Rule Prohibiting Contractual Arbitration of...

Polsinelli on

On June 15, 2022, the U.S. Supreme Court issued its highly anticipated opinion in Viking River Cruises, Inc. v. Moriana, which considered whether or not claims brought under the California Private Attorneys General Act...more

Proskauer - California Employment Law

Supreme Court Hears Oral Argument in Advance of Major Ruling on the Arbitrability of PAGA Claims

Last week, the United States Supreme Court heard oral argument in Viking River Cruises, Inc. v. Moriana, Case No. 20-1573,_ U.S. _ (2022). The case addresses whether the Federal Arbitration Act (“FAA”) requires the...more

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