Epstein Becker: California Supreme Court Opens the Door to Class Action Waivers, Shuts Door to Waiver of Representative Actions | Practical Law

Epstein Becker: California Supreme Court Opens the Door to Class Action Waivers, Shuts Door to Waiver of Representative Actions | Practical Law

This Law Firm Publication by Epstein Becker & Green, P.C. discusses Iskanian v. CLS Transportation Los Angeles, LLC. In a 2007 decision, Gentry v. Superior Court, the California Supreme Court established a test to determine the enforceability of a class action waiver in an employment arbitration agreement. In Iskanian, the California Supreme Court's first opportunity to address the issue, the court held that Gentry has been abrogated by the US Supreme Court's 2011 decision in AT&T Mobility, LLC v. Concepcion. Therefore, courts may not refuse to enforce an employment arbitration agreement simply because it contains a class action waiver. The California court also rejected the argument that a class action waiver is unlawful under the National Labor Relations Act (NLRA). However, the court found that an employee’s right to bring a representative action under California's Private Attorneys General Act (PAGA) is not waivable because such claims are not private claims within the scope of the Federal Arbitration Act (FAA). Update: On January 20, 2015, the US Supreme Court denied review of the California Supreme Court's decision.

Epstein Becker: California Supreme Court Opens the Door to Class Action Waivers, Shuts Door to Waiver of Representative Actions

by Epstein Becker & Green, P.C.
Published on 24 Jun 2014California, United States
This Law Firm Publication by Epstein Becker & Green, P.C. discusses Iskanian v. CLS Transportation Los Angeles, LLC. In a 2007 decision, Gentry v. Superior Court, the California Supreme Court established a test to determine the enforceability of a class action waiver in an employment arbitration agreement. In Iskanian, the California Supreme Court's first opportunity to address the issue, the court held that Gentry has been abrogated by the US Supreme Court's 2011 decision in AT&T Mobility, LLC v. Concepcion. Therefore, courts may not refuse to enforce an employment arbitration agreement simply because it contains a class action waiver. The California court also rejected the argument that a class action waiver is unlawful under the National Labor Relations Act (NLRA). However, the court found that an employee’s right to bring a representative action under California's Private Attorneys General Act (PAGA) is not waivable because such claims are not private claims within the scope of the Federal Arbitration Act (FAA). Update: On January 20, 2015, the US Supreme Court denied review of the California Supreme Court's decision.