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Feb 2
Class Action Arbitration Waivers Upheld

The following is not meant to be legal advice.

 

On December 19, 2006, the California Court of Appeal in Los Angeles in Konig v. U-Haul Company of California, upheld a class action waiver contained in an arbitration agreement that employees signed as a condition of employment. The Konig decision may provide California employers a valuable tool for controlling exposure to expensive, time-consuming class actions in certain types of claims through arbitration agreements.

 

The U-Haul arbitration agreement stated that the parties agreed to waive jury trial in favor of arbitrating all disputes relating to or arising out of an employee’s employment or the termination of that employment. The agreement covered claims under the California Labor Code.

 

An employee’s decision to accept or continue employment with the company was an agreement to be bound by the company’s arbitration policy. The court found the plaintiff to have accepted the terms of the agreement by electing to accept the benefits of employment.

 

 

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