Executive Summary: In a decision that will likely be seen as a win for employees, a sharply divided California Supreme Court ruled that the question of whether a court or an arbitrator decides if an arbitration agreement permits class claims should be determined on a case-by-case basis, specifically focusing on the agreement’s terms and resolving any ambiguities in favor of the non-drafting party. Given the high stakes nature of class proceedings and limited review of arbitrators’ rulings, we strongly recommend all employers seeking to avoid class arbitration have their agreements reviewed.
Home > State Law Articles > California > Human Resources (CA) > Who Decides Whether Arbitration Will Include Class Claims? California High Court Says Ambiguous Agreements May Be Decided in Favor of Workers