California Supreme Court to Decide Whether Class Action Waivers in Arbitration Agreements Are Enforceable Under California Law

Last week, the California Supreme Court agreed to decide whether class action waivers in employment arbitration agreements are enforceable under California law.  In Iskanian v. CLS Transportation Los Angeles, LLC, the Court of Appeal held that a class action waiver in an employment arbitration agreement was enforceable and that the plaintiffs could proceed only with their individual claims and not on behalf of a class.  See Opinion  The Court of Appeal held that the United State Supreme Court’s decision in AT&T v. Concepcion invalidated the California Supreme Court’s decision in Gentry v. Superior Court, which allowed class waivers to be held unenforceable in certain situations.  By granting review of the Iskanian decision, the California Supreme Court has signaled its willingness to decide whether Gentry continues to be viable after Concepcion and to resolve a split among California appellate courts on the enforceability of class action waivers in employment arbitration agreements. 

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