Articles Posted in Arbitration

Governor Newsom Signs AB 51 Preventing Mandatory Arbitration Agreements in Employment
Siegel LeWitter Malkani

For years, the battle over arbitration clauses and agreements has raged on in courts and legislatures throughout the country. The latest development in arbitration in employment in California came on Thursday in California when Governor Newsom signed AB 51. The governor’s approval of AB 51 is a victory employees throughout California- it effectively prohibits employers…

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Supreme Court Approves Forcing Employees into One-On-One Arbitration, Exacerbating the Power Imbalance Between Employees and Employers
Siegel LeWitter Malkani

Earlier this week, the Supreme Court killed one of the few remaining mechanisms for employees to get some measure of justice for the illegal acts of their employers – class arbitrations. The National Labor Relations Act (“NLRA”) was enacted in 1935 to protect the right of workers to band together and engage in collective action…

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A “Split Decision”: California Supreme Court Addresses Arbitration Agreements and Gives Some Good News (But Mostly Bad News) to Employees
Siegel LeWitter Malkani

In the Iskanian v.CLS Transportation Los Angeles, LLC decision, the California Supreme Court addressed the enforceability of employer-employee arbitration agreements in various circumstances. Iskanian v.CLS Transportation Los Angeles, LLC, 59 Cal.4th 348 (2014). The case delivered some good news – but mostly bad news – for employees and attorneys who represent employees. First, as to…

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Labor Arbitration May Preclude Common Law Claims Such as Wrongful Termination in Violation of Public Policy
Siegel LeWitter Malkani

The law is pretty well settled that a labor arbitration does not generally bar a unionized employee from bringing a claim under the Fair Employment and Housing Act, such as a discrimination, sexual harassment or retaliation claim. See Alexander v. Gardner-Denver (1974) 415 U.S. 36; Camargo v. California Portland Cement Co. (2001) 86 Cal.App.4th 995.…

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Enforceability of Wage Claim Arbitrations Hangs in the Lurch Pending Remand in California Supreme Court’s Sonic II
Siegel LeWitter Malkani

The tension between an employee’s simple right to receive his wages for work he performed and the U.S. Supreme Court’s favoritism towards employers, is almost palpable in the tortured history of Sonic-Calabasas A, Inc. v. Moreno (Sonic II) ___ Ca.4th ___ (Oct. 17, 2013). Here the employer imposed an arbitration agreement upon Mr. Moreno. When…

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Enforceability of Arbitration Agreements Continues to Flutter in the Wind: Arbitration Agreement Upheld in Peng v. First Republic, but Depending on Circumstances, Might Not be Upheld in Other Cases
Siegel LeWitter Malkani

Reading arbitration cases is like walking through a muddy field on a dark and rainy night. What is okay in the context of one case, is not in the context of another case. It just depends on how much you slip and slide through the mud and where exactly you fall. Take the recent case…

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Arbitrator’s Award Vacated: Error to Hold that Employee Could Be Denied Family Leave Due to Employer’s Misinterpretation of the Law
Siegel LeWitter Malkani

Mr. Richey worked as a sales manager at a Toyota dealership. He suffered a back injury while moving furniture at home, and applied for family leave from Toyota. The leave was granted, but Mr. Richey was fired because his employer alleged that he was abusing his family leave by working in a family restaurant he…

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Employer Waived Its Right to Have Arbitrability of an Employment Agreement Determined by the Arbitrator, but Labor Code §206.5 Does Not Prohibit the Arbitration of Claims
Siegel LeWitter Malkani

Pulli v. Pony International (June 19, 2012) ___ Cal.4th____ is another interpretation of an arbitration agreement in a long line of cases interpreting whether or not an arbitration agreement is enforceable. The fact that this case even exists underscores the fact that the law on the enforceability of arbitration agreements is unnecessarily murky and that…

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Even Though Employers Have A Significant Advantage Over Employees in Selecting A Forum – Such as Arbitration – Employer who Hides the Ball Unfairly Takes Advantage of Its Position
Siegel LeWitter Malkani

Alright – enough already! The courts really give employers every unfair opportunity to require their employees to “agree” to arbitrate their disputes. But even the courts agree that employers can’t be allowed to hide what they are doing! Take Empire Today LLC (also known as Flooring Install). Their management should be ashamed of themselves. Empire…

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Language of Arbitration Agreement Permits Court, not Arbitrator, to determine Whether Arbitration Agreement is Enforceable on Facts of this Case, and Court determines that Multiple Unconscionable Provisions Invalidate this Agreement
Siegel LeWitter Malkani

CantorCO2e’s mandatory employment agreement was riddled with unconscionable provisions, errors, and bias. No wonder the California Court of Appeals decided that the court should determine the validity of the agreement and then determined that the agreement was not valid. Ajamian v. CantorCO2e, LLP, ___Cal.App.4th ___ (Feb. 16, 2012). As part of employers’ end run around…

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