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BREAKING NEWS: Iskanian v. CLS Transportation Los Angeles, LLC eulogizes Gentry and buttresses PAGA

June 23, 2014 H. Scott Leviant

The California Supreme Court has just issued its opinion in Iskanian v. CLS Transportation Los Angeles, LLC (June 23, 2014). In a nutshell, here's the scorecard:

  • The question is whether a state's refusal to enforce such a waiver on grounds of public policy or unconscionability is preempted by the FAA. We conclude that it is and that our holding to the contrary in Gentry v. Superior Court (2007) 42 Cal.4th 443 (Gentry) has been abrogated by recent United States Supreme Court precedent. 

  • [W]e conclude that an arbitration agreement requiring an employee as a condition of employment to give up the right to bring representative PAGA actions in any forum is contrary to public policy. In addition, we conclude that the FAA's goal of promoting arbitration as a means of private dispute resolution does not preclude our Legislature from deputizing employees to prosecute Labor Code violations on the state‘s behalf. Therefore, the FAA does not preempt a state law that prohibits waiver of PAGA representative actions in an employment contract.

Slip op., at 1-2. Tough day to be opposed to the FAA's all-consuming rights grab. But the PAGA ruling is a small salve.

By H. Scott Leviant. Editor and site author H. Scott Leviant can be found on Google+, Twitter and LinkedIn, among other places.

In Class Actions: New Opinions, Civil Procedure: California Courts, Class Actions: Arbitration Tags Arbitration, PAGA, Gentry, FAA
← Analysis of Duran v. U.S. Bank National Association Ninth Circuit joins the list of other Circuits rejecting Norris-LaGuardia and NLRA-based challenges to individual arbitration requirements →

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Troester v. Starbucks Corporation Briefs/Links (with Opinion Link)


The Complex Litigator Home
In Gilberg v. Cal. Check Cashing, Ninth Circuit extends Syed, holding that FCRA precludes all surplussage in background check disclosures
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Check out the September 12, 2018 edition of the Daily Journal for a pithy comment on Troester
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Central District of California Local Rule 23-3 finally addressed in published Ninth Circuit opinion
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Petition for Rehearing Denied in Troester v. Starbucks; Minimal change to Opinion
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BREAKING: Opinion in Troester v. Starbucks now available -- Holds No Federal De Minimis Defense to CA Wage and Hour Laws and no CA De Minimis Defense on Facts in Record
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BREAKING NEWS: Troester v. Starbucks opinion will be released tomorrow
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Morris v. Ernst & Young, LLP, 834 F.3d 975 is officially vacated by Ninth Circuit
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  • In Gilberg v. Cal. Check Cashing, Ninth Circuit extends Syed, holding that FCRA precludes all surplussge in backgro… https://t.co/3QsoYtA0Fl
    about 2 weeks ago
  • Twitter Permanently Bans GayPatriot Bruce Carroll, Cites Kafka for Precedent https://t.co/rmC208kTsY #VodkaPundit v… https://t.co/Wvd7YgRdAZ
    about 3 months ago
  • RT @BreitbartNews: If the BB account gets banned for poasting this link, it's still worth it. https://t.co/U1mlXBuAmD
    about 4 months ago
  • Petition for Review of PAGA decision denied in Huff v. Securitas Security Services USA https://t.co/QHi0VNFB3J
    about 4 months ago


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