California Appeals Court Upholds Class Action Arbitration Waivers

On December 19, 2006, the California Court of Appeal in Los Angeles issued a decision that may help employers stem the rising tide of class action litigation. In Konig v. U-Haul Company of California, the court upheld a class action waiver contained in an arbitration agreement that employees signed as a condition of employment. Although a similar issue is now before the California Supreme Court, the Konig decision may provide California employers a valuable tool for controlling exposure to expensive, time-consuming class actions in certain types of claims.