Interestingly, national and federal law differ as to which claims can be included in the arbitration proceedings. In 2000, the California Supreme Court ruled in Armendariz against Foundation Health Psychcare Services, Inc. In armendariz, the court ruled that the rights to discrimination invoked under California`s Fair Employment and Housing Act (FEHA) could be subject to mandatory arbitration. This is the law in California courts. ©2020 Jackson Lewis P.C. This material is provided for informational purposes only. This is neither a legal advice nor a client-lawyer relationship between Jackson Lewis and a recipient. Beneficiaries should consult a lawyer before taking any action based on the information contained in this material. This material may be considered in some jurisdictions as attorney advertising. Previous results do not guarantee a similar result. The FAA generally makes arbitration agreements « valid, irrevocable, and enforceable » and was explicitly developed to reflect a national policy in favor of arbitration.
According to the FAA, no state can enact or enforce laws that affect, limit, treat, or discriminate against arbitration. As has already been said, we are awaiting a decision from the Luce Forward Tribunal, which should decide whether arbitration agreements can include title VII discrimination rights in their scope. On the other hand, federal law is not currently clear as to the applicability of agreements requiring the reconciliation of rights to discrimination in Title VII. The source of the dispute in the Ninth Court of Appeal concerns the validity of the Duffield Court`s 1998 decision against Robert Stephens & Co. In Duffield, the court ruled that the Civil Rights Act of 1991 excluded mandatory arbitration for Title VII claims. Before California`s ban on forced regulation went into effect, several parties filed a lawsuit against the state. Last January, a California federal judge issued an injunction that blocked important sections of the law from taking effect on the grounds that the Federal Arbitration Act (FAA) anticipates state law. As of September 2020, AB 51 is still operating in the judicial system. Although there is reason to believe that the courts will find much of the law unenforceable.
Our labour lawyers are following the issue closely for further developments. Take this opportunity to check your arbitration agreement, to make sure it says what you mean. Just in case, let a lawyer give you a second look. And if your arbitration agreement is old enough to wear a mask, check that it needs to be updated to meet your needs and the ever-changing legal landscape. . . .