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Wednesday, September 5, 2007

California Supreme Court Addresses Class Action Waiver

CaliforniaflagJust before the Labor Day weekend, in a 4-3 decision, the California Supreme Court held that courts may invalidate arbitration agreements that purport to waive an employee's right to bring a class action lawsuit. The Court directed the lower courts to invalidate such a clause if class arbitration would be a significantly more effective means than individual arbitration actions in vindicating the employee’s statutory rights (there, statutory claims to overtime). The court also held that providing an employee 30 days after hire to opt out of an arbitration clause did not preclude a finding that the clause was unconscionable.

Gentry v. Circuit City Stores, Inc., 07 CDOS 10363 (Aug. 30, 2007).

[Meredith R. Miller]

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