2016 | Agosto 25
The Ninth Circuit and the California Court of Appeal have each issued decisions that may fundamentally affect how employers deal with arbitration agreements in the future. In Morris v. Ernst & Young, the Ninth Circuit held that it is unlawful to require an employee to sign an arbitration agreement that includes a class action waiver. In Esparza v. Sand & Sea, Inc., the California Court of Appeal refused to enforce an arbitration provision that was contained only in an employee handbook.
Ernst & Young moved to compel arbitration, citing the fact that the employees had signed arbitration agreements. The arbitration agreements required employees to (1) pursue all legal claims arising from the employment relationship exclusively through arbitration; and (2) arbitrate only as individuals and in “separate proceedings.” The latter of these provisions is commonly referred to as a “class action waiver” because it precludes employees from pursuing class or collective actions against the company.
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