Federal Arbitration Act

FAA section 2's exception for contracts of employment for workers in interstate commerce does not apply to or exempt business entities or commercial contracts from the FAA even if they are engaged in interstate commerce.  Plaintiff was a sophisticated business.  So delegation of arbitrability questions to the arbitrator in accordance with the chosen AAA Rules was not unconscionable.  Accordingly, it… Read More

The FAA's exemption for contracts of employment for workers in interstate and foreign commerce applied to plaintiff who worked in a warehouse in California which served as a transhipping depot for Adidas products which arrived at the warehouse from foreign countries, were stored temporarily at the warehouse before being loaded on trucks for distribution to local retailers.  Though plaintiff transported… Read More

After successfully moving to compel arbitration of Suarez's wage-and-hour claim, the defendant employer failed to pay its share of the initial arbitration fee.  This decision grants the employee's petition to vacate the order denying his motion to withdraw the dispute from arbitration on the ground that non-payment of the fee within 30 days of its due date was a breach… Read More

This decision holds that an arbitration agreement in an employment contract was unconscionable and therefore unenforceable because (1) it did not explain and separately provide for waiver of the employee's right to sue in court to enforce his individual PAGA claim (as opposed to the non-waivable right to sue under PAGA for the benefit of other employees), and (2) in… Read More

The FAA applies to an arbitration agreement between defendant, a paratransit provider, and plaintiff, one of its drivers.  Though plaintiff was not an employer "in" interstate commerce since he drove only local, in-state routes not necessarily connected to airports or other modes of interstate commerce, his employer  provided paratransit services mandated by the ADA.  Plaintiff was hired to and did… Read More

The FAA does not preempt California law insofar as it invalidates a waiver of an employee's right to bring PAGA claims arising out of Labor Code violations that affected the plaintiff employee.  However, the FAA does preempt California law (Iskanian v. CLS Transportation Los Angeles, LLC (2014) 59 Cal.4th 348 and progeny) insofar as it precludes waiver of the employee's… Read More

Following Rittmann v. Amazon.com, Inc. (9th Cir. 2020) 971 F.3d 904, this decision holds that drivers who drove goods from in-state warehouses to Domino's franchisees in California are workers engaged in interstate commerce within the meaning of the exception to the FAA's scope.  These drivers handled the last stage of transportation of the goods from out-of-state sources to the California… Read More