Ninth Circuit: Mandatory Class Action Waivers in Arbitration Agreements Are “Illegal”
APPLIES TO Employers with Alaska, Arizona, California, Guam, Hawaii, Idaho, Montana, Nevada, Oregon and Washington Employees |
EFFECTIVE August 22, 2016 |
QUESTIONS? Contact HR On-Call |
The Ninth Circuit has stated that use of mandatory class action waivers in arbitration agreements are prohibited, becoming the second federal circuit court to strike down such agreements. In short, employers in the states covered by the Ninth Circuit cannot require employees to sign an agreement giving up their right to class action/collective claims as a condition of employment.