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California employment case index

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2 cases

Quach v. California Commerce Club: California Abrogates the Arbitration-Specific “Prejudice” Requirement for Waiver

July 25, 2024
Quach v. California Commerce Club, Inc.California abandons its arbitration-specific rule requiring proof of prejudice to establish that a party waived the right to compel arbitration; waiver is now governed by the same general contract principles — proof by clear and convincing evidence of an intentional relinquishment — that apply to any other contractual right.Quach v. […]

Westmoreland v. Kindercare: The PAGA-Waiver Poison Pill

April 24, 2023
Kindercare’s arbitration agreement contained a “poison pill”: a clause providing that the whole agreement is invalid if its class/representative-action waiver is unenforceable. Because a wholesale predispute waiver of representative PAGA claims cannot be enforced after Iskanian and Viking River, the Court of Appeal held the poison pill voided the entire agreement — sending every claim, including the employee’s individual claims, to court. Had Kindercare omitted the poison pill, Viking River would have let it compel the individual claims; its own drafting foreclosed that path. The drafter was held to the all-or-nothing clause it wrote.