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Iskanian v. CLS Transportation Los Angeles, LLC by Alston Bird LLP - Atlanta Office
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June 8, 2012
Previously published on June 7, 2012
In a case with far-reaching and favorable implications for California employers, the California Court of Appeal for the Second Appellate District upheld an underlying trial court’s decision to compel individual arbitration pursuant to an employment agreement that contains class and representative action waivers. Iskanian v. CLS Transportation Los Angeles, LLC (June 4, 2012) (B235158). Despite the waiver clauses, the plaintiff had sought to bring his claims as an individual, as a putative class representative and in a representative capacity under the California Private Attorney General Act (PAGA).1 In upholding the decision, the appellate court specifically held that the U.S. Supreme Court’s decision in AT&T Mobility LLC. v. Concepcion (2011) 131 S. Ct 1740 is binding authority with respect to the enforceability of the employment agreement at issue and reiterated the Concepcion holding that “requiring the availability of class wide arbitration interferes with fundamental attributes of arbitration and thus creates a scheme inconsistent with the FAA.”
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