Arbitration Of Claims

Topic: Arbitration: Key Developments Impacting Employment & Labor Law 

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

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.

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

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.

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.

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.

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.

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).

Charlie co-authored the article “The Role of Arbitrators in Questioning Witnesses,” published in the ARIAS·U.S. Quarterly, Q1 2022.

It is republished here with permission.

Do an airline’s ramp workers qualify as “transportation workers” exempt from the Federal Arbitration Act (FAA)?

On March 31, 2022, the Supreme Court of the United States issued a decision in Badgerow v. Walters, No 20-1143, addressing when federal courts have jurisdiction to rule on motions to confirm, modify, or vacate arbitration awards under the Federal Arbitration Act (FAA).

A federal court must have an independent jurisdictional basis to confirm or vacate an arbitration award and cannot “look through” to the underlying dispute to establish jurisdiction, the U.S. Supreme Court has ruled in a case involving an employee’s wrongful termination claim. Badgerow v. Walters, et al., No. 20-1143 (Mar. 31, 2022).

THE ENDING FORCED ARBITRATION OF SEXUAL ASSAULT AND SEXUAL HARASSMENT ACT OF 2021 IS EFFECTIVE IMMEDIATELY AND APPLIES TO ANY CASES OF SEXUAL ASSAULT OR SEXUAL HARASSMENT ASSERTED AFTER ITS EFFECTIVE DATE THAT MAY BE COVERED BY EXISTING MANDATORY ARBITRATION AGREEMENTS.

To update our February 16, 2022 Blog, on March 3, 2022, President Biden signed the law amending the Federal Arbitration Act to prohibit mandatory arbitration of employee claims of sexual harassment or sexual assault.