Showing 5 posts in FAA.

US Supreme Court Ruling Allows California Employers to Enforce Arbitration Agreements and Limit PAGA Claims

The United States Supreme Court's recent decision in Viking River Cruises v. Moriana, No. 20–1573 (June 15, 2022) benefits California employers as it will make it easier for them to enforce arbitration agreements related to claims under California's Private Attorneys General Act (PAGA) and limit class actions and quasi-class actions. More ›

U.S. Supreme Court Removes Prejudice Requirement From Arbitration Waiver Test

In deciding Morgan v. Sundance, Inc., the U.S. Supreme Court has resolved a circuit split, answering the question of whether a party must show prejudice when arguing that the opposing party waived its right to compel arbitration. Previously, all federal circuit courts except the Seventh and D.C. Circuits used an arbitration-specific waiver rule that requires a showing of prejudice. The Supreme Court has now eliminated this requirement. More ›

U.S. Supreme Court Puts the Brakes on Mandatory Arbitration, Holds Transportation Workers Exempt from the Federal Arbitration Act

The United States Supreme Court recently handed workers a rare victory in New Prime Inc. v. Oliveira. The Supreme Court ruled that transportation workers engaged in interstate commerce—including those labeled as independent contractors—are exempt from the Federal Arbitration Act (FAA) and thus cannot be compelled to undergo mandatory arbitration.  As a result of this decision, employers in the transportation industry will have to review their existing arbitration policies and assess whether or not they comply with applicable local, state, and federal laws. More ›

SCOTUS Green Lights Class Action Waivers in Major Win for Employers

The United States Supreme Court ruled earlier this week that employees must submit claims to arbitration on an individualized basis when their employment agreements require it, even when those claims could be brought as class or collective action under federal legislation such as the Fair Labor Standards Act. Writing for the majority, Justice Neil Gorsuch held that parties to an arbitration agreement are bound by their agreement, as the Federal Arbitration Act envisioned. The Court cited the long history of supporting private arbitration agreements as an efficient and cost-effective means of handling disputes between parties, including parties to an employment agreement who have a dispute over wages. More ›

U.S. Supreme Court and State Legislatures Address Privacy Issues in the Workplace

A loaded question, admittedly, but the answer for the Supreme Court, once again, is no.

In Federal Aviation Administration v. Cooper, No. 10-1024 (March 28, 2012), the Supreme Court had to decide whether individuals may recover actual damages under the Privacy Act for sustaining mental or emotional distress. 5 U.S.C. §552a(g)(4)(A). Writing for the majority in a 5-3 decision, (which did not involve Justice Kagan), Judge Alito dispatched with all suspense by first declaring the holding that the Act does not provide for such remedies. The Privacy Act bears unique qualities. It covers the activities of Executive Branch agencies who hold confidential records. The Act permits an individual to file a civil suit against an agency over "intentional or willful" violations of the Act. 5 U.S.C. §552a(g)(1)(D) & 5 U.S.C. §552a(g)(4)(A). An individual can recover "actual damages" upon proving that an agency has violated the requirements of the Act "in such a way as to have an adverse effect on an individual". Id. More ›