Executive Summary. The Ninth Circuit and the California Court of Appeal have each issued decisions that may fundamentally affect how employers deal with arbitration agreements in the future. In Morris v. Ernst & Young, the Ninth Circuit held that it is unlawful to require an employee to sign an arbitration agreement that includes a class action waiver. In Esparza v. Sand & Sea, Inc., the California Court of Appeal refused to enforce an arbitration provision that was contained only in an employee handbook.
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