Despite high-profile cases, class-action waivers still aren’t silver bullets in California

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in Employment Law,Human Resources

California courts do not like class-action waivers. For years, many California courts refused to enforce them, exposing California businesses to class-action liability regardless of any agreement with employees or customers to forgo class litigation.

The Supreme Court of the United States’ decision in AT&T Mobility v. Concepcion, was supposed to change all that. It didn’t.

In the seminal case on the enforceability of class action waivers in California, Discover Bank v. Superior Court, the California Supreme Court ruled class-action waivers “unconscionable” when included in consumer contracts. Subsequent cases extended this rule to employment agreements. These cases rendered class-action waivers in California superfluous.

Enter Concepcion, the Supreme Court’s decision that directly overturned Discover Bank.

Class-action waivers are typically included in arbitration agreements, which many businesses favor because arbitration ...(register to read more)

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