Calif. High Court OKs Waivers, Except for PAGA

June 23, 2014 – In The News

David F. Faustman was quoted in the Law360 article, "Calif. High Court OKs Waivers, Except for PAGA." Full text can be found in the June 23, 2014, issue, but a synopsis is noted below.

The California Supreme Court ruled arbitration agreements with mandatory class waivers are generally enforceable in light of the landmark Concepcion ruling from the nation’s highest court, but ruled that Private Attorneys General Act claims can’t be waived.

In a 6-1 ruling, the court said that the 2007 Gentry decision, which often led to the invalidation of class waivers, was trumped by the Federal Arbitration Act in light of the 2011 Concepcion ruling. The court reversed a lower court’s judgment compelling arbitration of a limo driver’s proposed wage class action against CLS Transportation Los Angeles LLC.

“It's a clear victory for the employer on all of the class action issues, including Federal Arbitration Act preemption and the notion that the NLRA somehow made the class action waiver illegal,” said David Faustman, who represented CLS in the case.