Employee Class Action Ruling Spurns Legal Concerns

Law360, New York (September 17, 2007, 12:00 AM EDT) -- A recent landmark decision by the Supreme Court of California allowing employees to bring class claims alleging wage-and-hour violations even if they signed arbitration agreements banning them from pursuing such actions has some attorneys crying foul over the ruling's consequences for employers.

In a 4-3 ruling handed down Aug. 30, the court found that a provision in an arbitration agreement that waives the right of employees to bring a class action for unpaid wages will be void if class treatment is a “significantly more effective practical...
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