California Tosses Employer Ban on Class Arbitration
When it comes to labor and employment law, California may as well be its own country. The intricacies of the Golden State's worker-protection laws--from strictly enforced lunch and break periods to mandatory harassment training for all managers--are well documented.
October 31, 2007 at 08:00 PM
12 minute read
When it comes to labor and employment law, California may as well be its own country. The intricacies of the Golden State's worker-protection laws–from strictly enforced lunch and break periods to mandatory harassment training for all managers–are well documented. On Aug. 30 California's Supreme Court added yet another wrinkle to the numerous dangers employers with operations in California face.
In Gentry v. Superior Court (Circuit City), the Supreme Court found that even if employees sign an otherwise valid, enforceable arbitration clause that bars them from bringing class claims, they might still be able to pursue wage-and-hour claims on a class basis if the court determines class arbitration is a better way to resolve the dispute.
“In some cases, the prohibition on class-wide relief would undermine the vindication of employees' unwaivable statutory rights,” wrote Justice Carlos R. Moreno for a sharply divided panel. “[C]lass arbitration waivers should not be enforced if a trial court determines that class arbitration would be a significantly more effective way of vindicating the rights of affected employees.”
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