California Supreme Court: Federal Arbitration Act Preempts State Labor Hearing Waiver Rule

The Federal Arbitration Act (“FAA”) preempts California law prohibiting the waiver of an administrative hearing before the California Labor Commissioner in an employment arbitration agreement, the California Supreme Court ruled in a 5-2 decision. Sonic-Calabasas A, Inc. v. Moreno, No. S174475 (Cal. Oct. 17, 2013).