HR - Arbitration Issues

Executive Summary: On May 16, 2024, the U.S. Supreme Court decided Smith v. Spizzirri , holding that federal district courts have no discretion under Section 3 of the Federal Arbitration Act (“the FAA”) to dismiss a case once the district court has determined that the claims properly belong in arbit

On May 16, 2024, the Supreme Court of the United States held that when a federal district court determines that claims in a lawsuit are subject to arbitration and a party requests a stay, the Federal Arbitration Act (FAA) requires the court to issue a stay pending arbitration and the

By: United States Supreme Court Unifies Circuits and Holds That Courts May Not Dismiss Cases Ordered to Arbitration By: United States Supreme Court Unifies Circuits and Holds That Courts May Not Dismiss Cases Ordered to Arbitration On May 16, 2024, the Supreme Court of the United States of America (

On April 22, 2024, the Supreme Court of the United States conducted oral arguments in a case addressing federal courts’ handling of lawsuits after claims are compelled to arbitration. The Supreme Court seemed skeptical that dismissing lawsuits without prejudice is truly less burdensome on the court

Two days before the United States Supreme Court ruled in Bissonnette v. LePage Bakeries Park St., LLC ,1 that the Federal Arbitration Act’s (FAA) transportation worker exemption (meaning the FAA would not apply) extends beyond the transportation industry, the U.S. Court of Appeals for the Ninth Circ

Arbitration agreements with warehouse workers and others who play a “direct and necessary role” in the transportation of goods and people may fall within the “transportation worker exemption” to the Federal Arbitration Act (FAA), the U.S. Court of Appeals for the Ninth Circuit held. Ortiz v. Randsta

Arbitration provides employers with an alternative venue to resolve disputes instead of litigation. Similar to litigation, a claimant files a claim and the parties resolve the dispute with a binding decision.

On July 21, 2023, the U.S. Court of Appeals for the Ninth Circuit kept in place a ruling that local delivery drivers who made deliveries completely inside California are still engaged in interstate commerce and exempt from the Federal Arbitration Act (FAA).

The U.S. Supreme Court held that when a district court denies a motion to compel arbitration under the Federal Arbitration Act (FAA), the court must stay its proceedings while that appeal is pending. Coinbase, Inc. v. Bielski , No. 22-105 (June 23, 2023).

On June 23, 2023, in a 5-4 decision, the U.S. Supreme Court held that district courts (i.e. federal trial courts) must stay pre-trial and trial proceedings while an appeal of a decision denying a motion to compel arbitration is pending. See Coinbase, Inc. v. Bielski , 599 U.S. ___ (2023). Although t

On June 23, 2023, the Supreme Court of the United States held district court proceedings must be put on hold during an appeal on the question of whether claims are subject to arbitration. The ruling is a big win for businesses that had argued staying underlying cases is necessary to

Employers should be concerned that just this week, Democratic lawmakers (Sen. Cory Booker of New Jersey and Rep. Colin Allred of Texas) outlined legislation that would ban the arbitration of claims involving race discrimination in the employment context -- The Ending Forced Arbitration of Race Discr

Topic: Arbitration: Key Developments Impacting Employment & Labor Law

Amidst the flurry of activity taking place before the end of the 117th U.S. Congress, the House of Representatives quietly passed the Speak Out Act on November 16, 2022, by an overwhelming majority. The bill previously passed the U.S. Senate in September and President Biden signed it into law

On October 17, 2022, the Supreme Court of the United States vacated a Ninth Circuit ruling addressing the scope of the “transportation worker” exemption from the Federal Arbitration Act (FAA). The FAA generally requires enforcement of arbitration agreements but exempts “transportation workers” from

Arbitration agreements, which aim to keep legal disputes between employees and employers out of the courts, are becoming more common. However, recent developments have led to significant shifts in how and where enforceable agreements may be presented to employees.

Individuals employed as ramp workers who frequently handle cargo for an airline are “transportation workers” exempt from the Federal Arbitration Act (FAA), the U.S. Supreme Court has held. Southwest Airlines Co. v. Saxon , No. 21-309 (June 6, 2022). Therefore, the employees are not required to arbit

On June 6, 2022, the Supreme Court of the United States ruled that airline cargo loaders are exempt from the Federal Arbitration Act (FAA) under the statute’s “transportation worker” exemption.

In this episode, Jen discusses the current status of employment arbitration agreements, and the upcoming U.S. Supreme Court case in Viking River Cruises, Inc. v. Moriana, which could pave the way to include PAGA waivers in California agreements.

A party is not required to show prejudice to establish that an opposing party has waived its right to arbitrate by litigating in court, the U.S. Supreme Court has held in a unanimous decision. Morgan v. Sundance, Inc . , No. 21-328 (May 23, 2022).