On March 3, President Joe Biden signed into law one of the most significant modifications ever made to federal arbitration law. Known as the “Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021” (the Act), the new law essentially restricts employers from forcing workplace sexual harassment or assault claims to be resolved
Arbitration Agreement
Congress passes bill prohibiting sexual harassment and assault arbitration
By Veronica Miclot & Christopher Bouriat on
On February 7, 2022, the United States House of Representatives passed H.R. 4445, which would modify the Federal Arbitration Act by carving out an exception for cases involving sexual harassment and assault. The bill titled, “Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021” – which was passed by the Senate on…
Ninth Circuit rules to lift preliminary injunction on California’s ban on mandatory employee arbitration agreements
By Michele Haydel Gehrke, Mara Curtis & Brandon Nhan on
A split Ninth Circuit panel vacated a 2020 preliminary injunction that blocked the enforcement of California’s A.B. 51, which prohibits mandatory arbitration clauses in employment contracts. If the majority decision stands, it will mean that California employers can no longer require their employees or new hires to sign arbitration agreements (among other types of waivers)…
California Supreme Court: Employees who settle their own wage and hour claims still have standing to pursue PAGA
By Mark Phillips, Mona Razani & Corrie Buck on
The California Supreme Court ruled on March 12, 2020 that an individual plaintiff’s settlement of their claims against an employer for purported wage and hour violations does not deprive that plaintiff of standing as an authorized representative in a Private Attorney General’s Act (PAGA) action.
PAGA deputizes an employee to file a lawsuit for purported California Labor Code violations against their employer to recover civil penalties on behalf of themselves, other similarly situated employees and the State of California. To pursue a PAGA action, the plaintiff must have standing as an “aggrieved employee.” PAGA defines an “aggrieved employee” as “any person who was employed by the alleged violator and against whom one or more of the alleged violations was committed.”
In Kim v. Reins International California, Inc., March 12, 2020, Case No. 5246911, Justin Kim, an employee of Reins International (Reins), brought a putative class action and PAGA representative action for Labor Code violations against his employer. While the case was pending, Reins moved to compel arbitration as to Kim’s individual claims and dismissed the class action claims based on the arbitration agreement. While the PAGA litigation remained in the trial court, the trial court stayed the action pending the arbitration of Kim’s individual claims. Kim ultimately settled his individual claims and dismissed them, leaving only the PAGA claim for resolution. Reins then moved for summary adjudication of the PAGA claim on the ground that Kim was no longer an aggrieved employee and his rights had been “completely redressed” by his own settlement and dismissal of his underlying claims. The trial court granted the dismissal and the Court of Appeals affirmed.Continue Reading California Supreme Court: Employees who settle their own wage and hour claims still have standing to pursue PAGA
California Courts Address Employment Arbitration Agreements
By John H. Lien on
Recent opinions by the California Courts of Appeal should encourage employers to review and assess the enforceability of their arbitration and related employment agreements.
Court Refuses to Enforce Agreement to Shorten Limitations Period on Wage and Hour Claims
In Pellegrino v. Robert Half International, the Court of Appeal found that an agreement to shorten…