Three key cases in one day address the future contours of arbitration clauses in California: action steps for employers
By Ben Gipson and Katharine J Liao
After what seems like years of confusion, the California Supreme Court this week clarified the permissible scope of class action waivers in arbitration clauses in California on 23 June in Iskanian v CLS Transportation Los Angeles, LLC.
The same day, the Ninth Circuit Court of Appeals confirmed that an arbitration policy could be adjusted for current employees, with only ongoing employment as the consideration for that new arbitration policy, if certain procedural safeguards were met.
While California law still has some very large carve-outs, employers now have a clear road map of how to proceed with class action waivers, if they choose to utilise arbitration agreements for their workforce…
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