White Paper

Got Arbitration Agreements With Class Waivers? The Fight May Not Be Over

 
“Since the United States Supreme Court upheld the validity of class action waivers in commercial consumer arbitration agreements several years ago, many employers have found arbitration agreements with class action waivers a valuable tool to protect against the tide of class action litigation. In addition to avoiding the risk of a runaway jury award, these agreements force aggrieved individuals to arbitrate their claims one by one, instead of permitting a costly, drawn out class action. Many courts have upheld such arrangements against legal challenge, but it appears this tide could be turning.

The United States Court of Appeals for the Ninth Circuit (covering Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, and Washington) recently dealt a major blow to employers when it struck down an arbitration agreement that forced employees to pursue work-related claims individually. The appellate court found that pursuing work-related claims together (or as a class) is protected concerted activity under the National Labor Relations Act (NLRA). The court thus concluded that agreements requiring employees to resolve their claims in “separate proceedings” are unenforceable because they interfere with this substantive right.”

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Kamran Mirrafati is a partner and litigation lawyer with Foley & Lardner LLP. His practice covers a wide range of labor and employment law with a particular focus on management-side labor relations. Mr. Mirrafati’s practice incorporates a strong traditional labor background, and he has garnered favorable decisions in numerous instances. He has successfully defended clients in Section 301 cases, representation proceedings, unfair labor practice charges, and labor arbitrations, pertaining to both contract interpretation and discipline matters. Mr. Mirrafati also counsels employers on many labor issues such as union strikes or picketing activities, facility closures, and contract administration.

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Kamran Mirrafati

Foley & Lardner LLP

Kamran Mirrafati is a partner and litigation lawyer with Foley & Lardner LLP. His practice covers a wide range of labor and employment law with a particular focus on management-side labor relations.

Mr. Mirrafati’s practice incorporates a strong traditional labor background, and he has garnered favorable decisions in numerous instances. He has successfully defended clients in Section 301 cases, representation proceedings, unfair labor practice charges, and labor arbitrations, pertaining to both contract interpretation and discipline matters. Mr. Mirrafati also counsels employers on many labor issues such as union strikes or picketing activities, facility closures, and contract administration.

Mr. Mirrafati’s employment law experience further includes litigation involving wage and hour issues, wrongful discharge, unfair competition, employment discrimination/retaliation, and breach of contract. He also regularly counsels employers in a variety of human resources issues, including wage and hour compliance, employment agreements, leaves of absence, and personnel practices and policies. Mr. Mirrafati also regularly advises corporations on the labor and employment aspects surrounding mergers and acquisitions.

Mr. Mirrafati represents clients across a diverse gamut of industries, which includes oil and gas, communications, hospitality, retail, health care, finance, manufacturing, and education.

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