HR - Arbitration Issues

Employment Arbitration Lives to Fight Another Day

On May 28, 2026, the Supreme Court of the United States held that workers who locally deliver goods that originate from other states may qualify for exemption from the Federal Arbitration Act (FAA) for transportation workers “engaged in … interstate commerce,” even if they do not cross state lines o

On May 14, 2026, the Supreme Court of the United States held that federal courts that have previously stayed claims in pending actions under Section 3 of the Federal Arbitration Act (FAA) “have jurisdiction to confirm or vacate a resulting arbitral award on those claims”—even when the motions to con

The Ninth Circuit Court of Appeals recently held that non-mutual offensive collateral estoppel—a doctrine under which a party different from the party in the original action seeks to preclude the opposing party from relitigating an issue decided against it—cannot be used to invalidate hundreds of ar

On March 19, 2026, the U.S. Court of Appeals for the Ninth Circuit reversed a lower court’s refusal to compel arbitration, holding that a generic severability clause does not undermine a clear delegation of arbitrability to the arbitrator. The arbitration agreement at issue incorporated institutiona

The California Supreme Court held in Fuentes v. Empire Nissan, Inc. (Feb. 2, 2026) that small or blurry print in an arbitration agreement does not automatically invalidate the agreement as unconscionable. Instead, the Court clarified that “illegibility” may create procedural unconscionability – i.e.

Employment arbitration agreements provide employers and employees with a fair and efficient way to resolve disputes outside of court litigation. The legal requirements for and best practices surrounding employment arbitration constantly develop. Heading into 2026, employers who use employment arbitr

The Second Circuit Court of Appeals recently held that the issue of whether a party is required to pay initial arbitration fees is a question for the arbitral body to decide, not the federal courts. The court further held that a party’s refusal to pay fees assessed is not necessarily

The Supreme Court of California is set to decide whether the Federal Arbitration Act (FAA) preempts a California statute that requires employers to forfeit the right to arbitrate disputes with employees if arbitration fees are not paid in a timely manner. The case could answer significant questions

Live Nation’s petition to overturn the Ninth Circuit’s Heckman decision highlights the importance of allowing parties to develop arbitration procedures tailored to mass arbitration.Heckman casts a shadow on attempts by arbitration services and companies to design rules needed to address the challeng

By: AAA Updates Employment Arbitration Rules as of May 1, 2025 The American Arbitration Association (“AAA”) recently updated its “Employment/Workplace Arbitration Rules and Mediation Procedures” (formerly entitled the “Employment Arbitration Rules”), effective May 1, 2025. The updates to the rules w

By: Employer Not Required To Initiate Arbitration Following Court-Ordered Arbitration The California Court of Appeal, Second Appellate District recently issued a clarifying decision in Michelle Arzate, et al. v. ACE American Insurance Company , addressing which party is responsible for initiating ar

The U.S. Court of Appeals for the Sixth Circuit Court has ruled that an arbitration provision in a plaintiff’s employment contract is binding and enforceable, even if the employer did not explain the provision or recommend the employee seek legal advice. In Gavette v. United Wholesale Mortgage, LLC

By: Employer Strikes Gold: California Court of Appeals Reverses Dismissal of Mining Company’s Arbitration Agreement In a recent unpublished California appellate court decision, the Court unanimously reversed the lower court’s ruling that an agreement to arbitrate contained in an employee handbook wa

When a “dispute” arises under the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA) depends on when the specific facts of the case show a “conflict or controversy” exists between the parties, the U.S. Court of Appeals for the Eighth Circuit held in affirming the trial cour

Courts are finding more workers who do not physically transport goods or people across state lines to be transportation workers exempt from arbitrating their claims under the Federal Arbitration Act (FAA).

By almost any measure, 2024 is a memorable year for employment and labor law — and it’s only halfway done.

The U.S. Department of Labor estimates 56 percent of all nonunion private-sector employees are subject to mandatory arbitration agreements. Many employers use such agreements—and the class action waivers contained therein—to mitigate the risks of class and collective actions. The Federal Arbitration

“Shall” means “shall” in the Federal Arbitration Act (FAA), a unanimous U.S. Supreme Court held in Smith v. Spizzirri , No. 22–1218 (May 16, 2024). The Court explained the language in the FAA providing a court “shall on application of one of the parties stay the trial of the action until [the] arbit