The California Supreme Court has issued its long-awaited opinion resolving the split in authority regarding whether Code of Civil Procedure sections 1281.97 and 1281.98 are preempted by the Federal Arbitration Act.…
Continue Reading CA Supreme Court Says Not So Fast on Draconian Arbitration Invoice Payment Rules

On Feb. 15, 2023, the Ninth Circuit in Chamber of Commerce v. Bonta issued its ruling on the ongoing question of Assembly Bill (AB) 51’s enforceability in relation to arbitration agreements, where the court once again affirmed that the Federal Arbitration Act (FAA) preempts AB 51.

Background on AB 51

California has attempted to legislate…

In a victory for California employers, the U.S. Supreme Court held in Viking River Cruises, Inc. v. Moriana that the Federal Arbitration Act (FAA) requires enforcement of arbitration agreements that waive an employee’s right to bring a Private Attorneys General Act (PAGA) claim on a representative basis – requiring such claims be brought on an…

In Morgan v. Sundance, Inc., the U.S. Supreme Court resolved a circuit split regarding whether a party has waived its right to arbitrate. Under the test reviewed by the Court, a party waived its right to arbitration if it knew of the right to arbitrate, acted inconsistently with that right, and prejudiced the other…

On Sept. 12, 2019, the California Supreme Court in ZB, N.A. v. Superior Court of San Diego County (Lawson) delivered a victory for California employers, clarifying that a plaintiff bringing a Private Attorneys General Act (PAGA) action may not recover as a “civil penalty” the “wages” referenced in Cal. Labor Code section 558, and thereby…

On May 21, 2018, in a 5-4 decision, the United States Supreme Court issued a long-awaited decision in Epic Systems Corp. v. Lewis, 584 U.S. ____ (2018), holding that mandatory employer-sponsored arbitration agreements do not offend the National Labor Relations Act (“NLRA”). Justice Gorsuch, joined by Chief Justice Roberts and Justices Kennedy, Thomas, and…

Does an employee have the right to proceed before the California Labor Commission after signing an agreement to arbitrate all claims? That is a question the California Supreme Court will have to decide after the U.S. Supreme Court vacated its decision in Sonic-Calabasas A, Inc. v. Moreno and remanded the case for further consideration in…