Supreme Court Issues Key Ruling Affecting Employers

It is time to carefully review arbitration agreements and class action waivers.

A few days ago the California Supreme Court delivered its highly anticipated ruling in the Sandquist v. Lebo Automotive case on the issue of whether it is the court or the arbitrator who decides whether an employment law case can proceed as a class action, or whether the plaintiff can only proceed on an individual basis.

Sandquist was filed as a discrimination claim by an employee who pled both individual and class claims against his employer. The plaintiff employee had signed an arbitration agreement. The defendant employer filed a motion to compel arbitration, and dismiss the class action.