News & Analysis as of

Federal Arbitration Act Mandatory Arbitration Clauses Unenforceable Contract Terms

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. 
Proskauer - California Employment Law

The Latest Developments in the Arbitration Wars – Implausible Sexual Harassment Claims

Since its enactment, the federal Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act has resulted in plaintiffs’ lawyers tacking on increasingly implausible sexual harassment claims to unrelated...more

Husch Blackwell LLP

NFL’s Arbitration Agreement Fumbles, Allowing Coach to Pursue Discrimination Claims in Court: Employment Law Lessons for Employers

Husch Blackwell LLP on

The National Football League (NFL) is in the spotlight this season, not because of any certain game on the field, but for a legal battle off it. Last week, the Second U.S. Circuit Court of Appeals agreed that a NFL coach...more

BakerHostetler

At Long Last, California District Court Permanently Enjoins Enforcement of AB 51

BakerHostetler on

There are times when one would rather not be proven right. Nearly four years ago, a California district court invalidated AB 51, which sought to prohibit mandatory arbitration by, among other things, calling for criminal...more

Holland & Knight LLP

The Law on ERISA Plan Arbitration Provisions Remains Unsettled

Holland & Knight LLP on

As previously discussed, courts continue to disagree over the enforceability of mandatory arbitration provisions containing class action waivers set forth in benefit plans governed by the Employee Retirement Income Security...more

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

Ninth Circuit Blocks California’s Ban on Mandatory Arbitration in Employment

On February 15, 2023, the Ninth Circuit Court of Appeals blocked a 2020 California law that attempted to prohibit employers from requiring employees and job applicants to agree to arbitration as a condition of employment. The...more

Skadden, Arps, Slate, Meagher & Flom LLP

Growing State Anti-Discrimination and Anti-Harassment Protections Create Patchwork of Regulations for Employers

The #MeToo Movement, now in its third year, continued its evolution from grassroots activism to legislative change in 2019, with new laws addressing discrimination and harassment emerging from state governments and resulting...more

Littler

EEOC Rescinds Policy Statement Disfavoring Arbitration Agreements

Littler on

As part of its efforts to rescind outdated guidance on a rolling basis, the EEOC recently dispensed with a 22-year-old policy statement that disfavored mandatory arbitration agreements between employers and employees....more

Carlton Fields

District Court Grants Motion to Compel Arbitration, Finding Arbitration Provision Not Severable From Allegedly Void Contract

Carlton Fields on

A Pennsylvania federal district court granted a motion to compel arbitration pursuant to 9 U.S.C. § 4 of the Federal Arbitration Act, over objection by the defendant on severability grounds. The defendant argued that its...more

Fisher Phillips

The See-Saw World of Uber’s Arbitration Agreement Again Tips In Uber’s Favor

Fisher Phillips on

Ever since Uber became part of our everyday world, the mandatory arbitration agreement it requires its independent contractor drivers to sign has been under constant scrutiny—and attack. A recent decision, however, fell in...more

Genova Burns LLC

New Jersey Appellate Division Invalidates Jenny Craig Employee Arbitration Provision

Genova Burns LLC on

This week, in Marilyn Flanzman v. Jenny Craig Inc. et al., No. A-2580-17, a panel of the Appellate Division found that an arbitration provision between weight loss company Jenny Craig and a former employee was unenforceable...more

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

Kentucky Supreme Court Rules FAA Does Not Protect Mandatory Employment Arbitration

In a surprise decision, the Supreme Court of Kentucky ruled on September 27, 2018, that the Federal Arbitration Act (FAA) does not protect employment arbitration agreements that are required as a condition of employment....more

Carlton Fields

First Circuit Holds Online Mandatory Arbitration Agreement Is Unenforceable

Carlton Fields on

The First Circuit recently held that an arbitration clause contained in the online contract of the ride sharing app, Uber Technologies, Inc., is unenforceable under Massachusetts law. ...more

Foley & Lardner LLP

Waiting for Gorsuch: SCOTUS Kicks Important Class-Action Waiver Case to Next Term

Foley & Lardner LLP on

Last week, the United States Supreme Court informed litigants in Epic Systems Corp. v. Lewis that it is pushing the case to its October 2017 term. The lawsuit, which rose up through the Western District of Wisconsin and the...more

Allen Matkins

Ninth Circuit Strikes Down Class Action Waivers In Employment Arbitration Agreements

Allen Matkins on

On August 22, 2016, the U.S. Court of Appeals for the 9th Circuit (which covers California) struck down a "concerted action waiver" (i.e., a waiver of class, collective or other group actions) in an arbitration agreement....more

Sheppard Mullin Richter & Hampton LLP

Ninth Circuit Invalidates Arbitration Agreement with Class Action Waiver

On August 22, 2016, the Ninth Circuit joined the Seventh Circuit in the split amongst U.S. Circuit Courts of Appeal on the issue of enforceability of employment arbitration agreements precluding class actions. The Ninth...more

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

Seventh Circuit Voids Employee Promises to Not Pursue Wage and Hour Claims as Members of a Class or Collective Action

Many employers will be surprised to learn that, under some circumstances, the National Labor Relations Act (NLRA) may regulate their ability to enter into certain contractual agreements with employees. The decision of the...more

Sheppard Mullin Richter & Hampton LLP

Seventh Circuit Holds Class Action Waivers are Unlawful and Unenforceable Creating a Circuit Split

On May 26, 2016, in the matter of Lewis v. Epic Systems Corporation, the U.S. Court of Appeals for the Seventh Circuit held that an arbitration agreement, which required employees to submit to individual arbitration for any...more

Morrison & Foerster LLP

Struggle At The Supreme Court Over Arbitration Clauses

Morrison & Foerster LLP on

The U.S. Supreme Court returned to familiar territory last week in DirecTV Inc. v. Imburgia (argued Oct. 6, 2015): the enforceability of an arbitration clause in a consumer contract containing a class action waiver. But...more

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