Calif. Ruling Shakes Up Employment Class Waiver Landscape

June 5, 2012 – In The News

A California appeals court recently found that the U.S. Supreme Court's decision in AT&T Mobility LLC v. Concepcion trumped a state precedent that discouraged class action waivers in employment cases. This ruling, many attorneys say, could change California’s current employee-friendly position on arbitration.

The California Second Appellate District ruled the Concepcion overruled the state’s Supreme Court decision in Gentry v. Superior Court. This ruling affirmed a trial court’s decision to compel individual arbitration and strike class claims in a wage-and-hour suit lodged against the limousine company CLS Transportation Los Angeles LLC. The ruling was a significant victory for not only CLS but also California employers.

David F. Faustman, a Partner at Fox Rothschild LLP, represents CLS and spoke to Law360 about the decision.

“This is a significant decision in favor of employers and in favor of arbitration as alternative dispute mechanism — one which frankly some courts and the legal establishment in California have been hostile to in defiance of the Supreme Court,” Faustman said.

CLS is represented by Faustman of Fox Rothschild LLP.