Class Action Waivers Good In Calif., PAGA Waivers Perhaps

Law360, New York (June 26, 2014, 12:31 PM EDT) -- In an important decision on employment arbitration agreements with predispute class and collective action waivers, in Iskanian v. CLS Transportation of Los Angeles[1] the California Supreme Court held that U.S. Supreme Court precedent abrogated the California Supreme Court's prior decision in Gentry v. Superior Court,[2] and that a state's refusal to enforce a class waiver on grounds of a state public policy or unconscionability is preempted by the Federal Arbitration Act. The California Supreme Court likewise rejected the argument that a class waiver is unlawful under the National Labor Relations Act. However, the state high court also held that neither Supreme Court precedent nor the FAA preempts state law that prohibits waiver of an employee's right to bring a "representative" action under California's Private Attorneys General Act....

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