Getting a foothold in a new career takes dedication and sacrifice. In many fields it’s expected that new entrants will pay their dues—often, ironically enough, by working for free. While unpaid interns and trainees often do get valuable experience and may even advance their careers, the real winners in these arrangements have always been employers. For decades, entire industries have built their economics on the backs of newcomers who have no choice but to work for free in exchange for necessary … [Read more...]
In Major Employee Victory, 9th Circuit Invalidates Mandatory Concerted Action Waivers
Employees cannot be forced to waive their right to pursue collective legal action as a condition of employment, the US Court of Appeals for the Ninth Circuit held last week. In Morris v. Ernst & Young, the Ninth Circuit declared that engaging in concerted activity is a "core right" guaranteed to employees under the National Labor Relations Act. "This case turns on a well-established principle: employees have the right to pursue work-related legal claims together,” Chief Judge Sidney R. … [Read more...]
Feds Move Beyond Confidentiality Agreements to Target Companies That Try to Undercut Whistleblower Laws with Monetary Recovery Waivers
A defense contractor accused of using restrictive severance agreements that would “chill” whistleblowers has agreed to settle the accusations and pay $265,000 in penalties, the Securities and Exchange Commission announced. The announcement marks the latest victory in the federal government’s ongoing campaign to encourage and reward whistleblowers, including employees who uncover fraud, waste and abuse in their workplaces. It’s also a sign that federal regulators’ crackdown on companies that use … [Read more...]
California Gym Member Who Never Saw Contract Until After E-Signing Didn’t Agree to Arbitration Clause, Court Finds
A former L.A. Fitness member who accused the gym of tricking him into buying an annual membership he didn’t want cannot be held to an arbitration agreement he wasn’t shown until after he electronically signed it, a federal district court held. When Beau Briones walked into the L.A. Fitness in Long Beach, California, he just wanted to cancel his cancel his personal training membership. But Briones said a salesperson pressured him into agreeing to one more month and then had him put his John … [Read more...]
Ninth Circuit: Company That Lost Key Legal Argument Can’t Use Arbitration Agreement to Get a Do-Over
Broad arbitration agreements unfairly rob employees and consumers of their day in court against corporations that have wronged them. By invoking an arbitration agreement early in litigation—often before a plaintiff can obtain critical incriminating evidence through the discovery process—a company can rip a case from the judge and instead compel the plaintiff to bring it before a corporation-friendly arbitrator. But sometimes defendants try to “have their cake and eat it, too,” choosing to … [Read more...]
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