California Justices Back Class Action Waiver But Decide a PAGA Claim Is Not Preempted

June 24, 2014 – In The News
Bloomberg BNA
David F. Faustman was mentioned in an article, "California Justices Back Class Action Waiver But Decide a PAGA Claim Is Not Preempted." The full article is available in the June 24, 2014 issue of Bloomberg BNA, but a synopsis is provided below.

On June 23rd, the California Supreme Court's previous decision to enforce class action waivers on the grounds of public policy were repealed by the U.S. Supreme Court's decisions regarding the Federal Arbitration Act.

David F. Faustman, who represented CLS Transportation, commented that the court's ruling was a "clear victory" for the employer. He continues to say that the decision is still in review on Iskanian's PAGA claim. It is still uncertain if there is a "principled difference" between this claim and a class action claim, which the court determined was averted by the FAA.