Concepcion Doesn’t Nix Class Waiver Bar, Calif. Justices Told

April 3, 2014 – In The News

David F. Faustman was quoted in the Law360 article "Concepcion Doesn’t Nix Class Waiver Bar, Calif. Justices Told." While the full text can be found in the April 3, 2014, issue of the Law360, a synopsis is noted below.

David F. Faustman on Thursday told California Supreme Court justices that the Federal Arbitration Act directly covers the issue at hand in Arshavir Iskanian v. CLS Transportation Los Angeles LLC, arbitration agreements, while the National Labor Relations Act does not.

“The courts don't have to follow the National Labor Relations Board,” Faustman said. “The FAA trumps the NLRA in this case unless and until Congress says there's ... a carveout.”

A representative for the Service Employees International Union et al. had told the court that, as per a prior ruling by the National Labor Relations Board, arbitration agreements with class waivers violate the National Labor Relations Act (NLRA).

A limo driver had urged the court to overturn an appellate court’s ruling that an employment contract required he take his wage-and-hour case to individual arbitration.