Military Contractor Can't Arbitrate Counselors' OT Suit

Law360, Los Angeles (April 4, 2013, 7:55 PM EDT) -- A California federal judge ruled Wednesday that Managed Health Network Inc. and its subsidiary couldn't compel arbitration of a putative class action alleging it misclassified licensed counselors working at U.S. military bases in order to avoid paying overtime wages, finding the counselors' arbitration provisions were unconscionable.

In a 13-page order, U.S. District Judge Susan Y. Illston ruled that the arbitration provision imposed on the counselors by Managed Health Network and MHN Government Services Inc. was procedurally unfair to the counselors because it was buried in “paragraph...
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