On July 21, 2023, the U.S. Court of Appeals for the Ninth Circuit kept in place a ruling that local delivery drivers who made deliveries completely inside California are still engaged in interstate commerce and exempt from the Federal Arbitration Act (FAA).
Arbitration Of Claims
Third Circuit Rejects Mandatory Arbitration Clause in ESOP
The Third Circuit refused to enforce a mandatory arbitration clause with a class action waiver in an ESOP, finding that the class action waiver deprived participants of statutory rights. The ESOP plan added the clause at issue in 2017. When plaintiffs filed a putative class action in 2019 asserting
U.S. Supreme Court: Federal Courts Must Stay Proceedings During Appeal of Arbitration Denial
The U.S. Supreme Court held that when a district court denies a motion to compel arbitration under the Federal Arbitration Act (FAA), the court must stay its proceedings while that appeal is pending. Coinbase, Inc. v. Bielski, No. 22-105 (June 23, 2023).
Supreme Court Requires Stay of Litigation Pending Appeal of a Denial of a Motion to Compel Arbitration
On June 23, 2023, in a 5-4 decision, the U.S. Supreme Court held that district courts (i.e. federal trial courts) must stay pre-trial and trial proceedings while an appeal of a decision denying a motion to compel arbitration is pending. See Coinbase, Inc. v. Bielski, 599 U.S. ___ (2023). Although this is a non-employment case, the Court’s decision is significant for employers because it may impact the effectiveness and enforceability of arbitration agreements under the Federal Arbitration Act.
In Big Win for Employers, Supreme Court Rules Court Proceedings Must Be Stayed During Appeal Over Arbitration
On June 23, 2023, the Supreme Court of the United States held district court proceedings must be put on hold during an appeal on the question of whether claims are subject to arbitration. The ruling is a big win for businesses that had argued staying underlying cases is necessary to
Further Erosion of Arbitration From Employment Agreements
Employers should be concerned that just this week, Democratic lawmakers (Sen. Cory Booker of New Jersey and Rep. Colin Allred of Texas) outlined legislation that would ban the arbitration of claims involving race discrimination in the employment context — The Ending Forced Arbitration of Race Discrimination Act.
Webinar Series: 2023 Employment Law Certificate Series: Bringing Clarity to Workplace Complexity
Topic: Arbitration: Key Developments Impacting Employment & Labor Law
President Biden Enacts Speak Out Act Curtailing the Use of Pre-Dispute Non-Disclosure and Non-Disparagement Clauses Involving Sexual Assault and Harassment Claims
Amidst the flurry of activity taking place before the end of the 117th U.S. Congress, the House of Representatives quietly passed the Speak Out Act on November 16, 2022, by an overwhelming majority. The bill previously passed the U.S. Senate in September and President Biden signed it into law
Supreme Court Sends Federal Arbitration Act Interstate Commerce Exemption Issue Back to Ninth Circuit
On October 17, 2022, the Supreme Court of the United States vacated a Ninth Circuit ruling addressing the scope of the “transportation worker” exemption from the Federal Arbitration Act (FAA). The FAA generally requires enforcement of arbitration agreements but exempts “transportation workers” from the statute’s application.
U.S. Supreme Court Denies Petition for Rehearing in Viking River Cruises, Inc. v. Moriana
On June 15, 2022, the U.S. Supreme Court ruled in Viking River Cruises, Inc. v. Moriana that bilateral arbitration agreements governed by the Federal Arbitration Act (FAA) may require arbitration of California Private Attorneys General Act (PAGA) claims on an individual basis only.
In early July, Moriana, the named plaintiff-employee at the
Employers should be aware of shifts in how arbitration agreements can be presented to employees
Arbitration agreements, which aim to keep legal disputes between employees and employers out of the courts, are becoming more common. However, recent developments have led to significant shifts in how and where enforceable agreements may be presented to employees.
FAA’s Transportation Worker Exception Covers Airline Ramp Agents, U.S. Supreme Court Holds
Individuals employed as ramp workers who frequently handle cargo for an airline are “transportation workers” exempt from the Federal Arbitration Act (FAA), the U.S. Supreme Court has held. Southwest Airlines Co. v. Saxon, No. 21-309 (June 6, 2022). Therefore, the employees are not required to arbitrate their wage-hour claims under the FAA, but may still be subject to arbitration under state law.
U.S. Supreme Court Issues Important Decision on the Federal Arbitration Act
On June 6, 2022, the Supreme Court of the United States ruled that airline cargo loaders are exempt from the Federal Arbitration Act (FAA) under the statute’s “transportation worker” exemption.
Episode 23: Arbitration Agreements: As the World Turns
In this episode, Jen discusses the current status of employment arbitration agreements, and the upcoming U.S. Supreme Court case in Viking River Cruises, Inc. v. Moriana, which could pave the way to include PAGA waivers in California agreements.
U.S. Supreme Court Holds Waiver of Arbitration Rights Does Not Require Showing of Prejudice
A party is not required to show prejudice to establish that an opposing party has waived its right to arbitrate by litigating in court, the U.S. Supreme Court has held in a unanimous decision. Morgan v. Sundance, Inc., No. 21-328 (May 23, 2022).