Last week, the U.S. Seventh Circuit Court of Appeals struck a blow to employers that require their employees to waive their right to bring class and collective actions to remedy wage and hour violations, finding these waivers violate the National Labor Relations Act's...
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Dispute Resolution & Arbitration
Mandatory Arbitration: Justice for All or Kangaroo Court?
When an employee learns that he or she may have been treated illegally by an employer, one option used to be going to court with co-workers who were similarly harmed to resolve their grievances together in a class action. A person may have a few thousand dollars at...
Mohamed v. Uber Technologies, No. C-14-5200 (N.D. Cal. June 9, 2015)
A federal district court judge in San Francisco issues a blockbuster opinion holding Uber's arbitration policy with its drivers unenforceable under California law. The court holds that the policy - imposed by way of a cell-phone clickbox screen - created a...
Mandatory Arbitration: Searching for Fairness
Arbitration is a common, employer imposed method for resolving employment conflicts without going to court. However, Outten & Golden Partner Wendi Lazar suggests that when an employee is forced by contract to arbitrate rather than sue, arbitration becomes a means...
FINRA Fines Merrill Lynch $1 Million for Pursuing Claims Against Employees in Court
The Financial Industry Regulatory Authority (FINRA) announced on January 25, 2012 that it fined brokerage house Merrill Lynch, Pierce, Fenner & Smith $1 million for requiring employees to resolve disputes relating to "retention bonuses" in New York state courts....
Judge Wood Denies Second Motion Seeking Arbitration of Class and Collective Action Wage and Hour Claims
In a recent decision, Judge Wood distinguishes Supreme Court precedent to find an arbitration agreement that did not provide for class arbitration invalid under Second Circuit precedent because it foreclosed the exercise of statutory rights. Reaffirming her initial...
FINRA Awards Broker Over $3 Million in Damages in Defamation Case
In a recent arbitration decision, a panel of FINRA arbitrators awarded $3.25 million in damages, interest, and costs to a broker who had alleged defamation and other claims against his former employer. The decision (known as an "award") concluded the arbitration...
FINRA Proposes Rule Change Precluding Collective Actions
The SEC recently published a notice that the Financial Industry Regulatory Authority, Inc. ("FINRA") has proposed a rule change to its Code of Arbitration Procedure for Industry Disputes. The proposal would be a welcome change - the new rule would make collective...
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