Bucking the California state court trend toward refusing to enforce employment-related arbitration agreements and class-action waivers by distinguishing and limiting the scope of Conception and other recent pro-arbitration US Supreme Court cases (see 32 Alternatives 11 (Jan. 2014)), the California Supreme Court has reversed its precedent in Gentry v. Superior Court, 42 Cal.4th 443 (2007) (bit. ly/lzCnGMD) and upheld the validity of class action waivers in employment arbitration agreements, in Iskanian v. CLS Transportation Los Angeles, LLC, No. S204032 (Cal. Jun. 23, 2014) (bit. ly/lnz9cYT). The court also followed the Fifth Circuit's reasoning in D.R. Horton, Inc. v. NLRB, Case No. 12-60031, 2013 U.S. App. LEXIS 24073 (5th Cir. Dec. 3, 2013, revised Dec. 4, 2013) (l.usa.gov/lbmmXDl) to reject the argument that class action waivers violate the National Labor Relations Act (NLRA), but nevertheless remanded to the lower court because of its finding that employers could not require waivers of representative actions under the California Private Attorney General Act (PAGA).
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