California Supreme Court issues key class-Action ruling — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

California Supreme Court issues key class-Action ruling

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in Employment Law,Human Resources

The California Supreme Court has issued its long-awaited decision in the case of Gentry v. Superior Court, deciding whether class-action waivers in employment arbitration agreements are legally binding.

In a case of good news/bad news for employers, the court didn’t say that all arbitration agreements, or even all class-action waivers, were invalid—just the poorly drafted ones.

In a sharply divided opinion, four justices reversed the Court of Appeal’s decision upholding a class-action waiver. The majority held that “at least in some cases, the prohibition of class-wide relief would undermine the vindication of the employees’ unwaivable statutory rights and would pose a serious obstacle to the enforcement of the state’s overtime laws.”

In other words, the waivers may interfere with enforcing California wage laws. Because that may be the case, the court crafted a method for trial judges to decide whether that’s the case in...(register to read more)

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