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Showing posts with the label Arbitration

New York’s Top Workplace Bills to Watch as Legislature Signs Off for the Year

New York lawmakers ended the 2026 legislative session by passing a wide range of workplace bills that could affect severance agreements, employment contracts, job postings, personnel files, wage-and-hour practices, arbitration, artificial intelligence, and workers’ compensation. While none of these measures are law yet, many are expected to be sent to Governor Hochul for consideration later this year. Some of the proposals would take effect immediately if signed, leaving employers little time to update policies, agreements, and compliance practices. Here are the top bills employers should know about and begin preparing for. Note: Even if Governor Hochul signs a bill, she may do so with an agreement that lawmakers will add chapter amendments when they return next session. Employers should confirm final action before treating any proposal as effective. Severance Agreements and Employment Contracts The No Severance Ultimatums Act ( S372A ) Employers offering covered severance agreements w...

California Supreme Court Rules FAA Does Not Preempt Arbitration Fee Deadline, Rejects Strict Penalties

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On August 11, 2025, the Supreme Court of California ruled that the Federal Arbitration Act (FAA) does not preempt [ t o prevent ] a state statute requiring employers to timely pay arbitration fees or forfeit the right to arbitration . The court rejected a strict reading of the statute, finding that the law does not prevent untimely payments from being excused absent evidence of “wrongful conduct.” Quick Hits The Supreme Court of California ruled that the FAA does not preempt a state law requiring prompt payment of arbitration fees, interpreting the requirement in the context of other statutes and legal principles that may excuse an untimely payment. The court clarified that employers may not automatically forfeit their right to arbitration for late fee payments if those delays are not willful or grossly negligent. The ruling emphasizes that parties can negotiate their own payment timelines in arbitration agreements. In  Hohenshelt v. Superior Court of Los Angeles County (Golden St...

Federal Courts Divided Over Private Enforcement of ‘No Surprises Act’ Arbitration Awards

Congress enacted the No Surprises Act ( NSA ) to protect patients from unexpected medical bills . A central pillar of the  NSA  is its independent dispute resolution ( IDR ) process, under which payers and providers can submit disputed claims to binding arbitration. Since the IDR process under the NSA began in April 2022, hundreds of thousands of claims have been submitted. As arbitrators have handed down awards, largely in favor of providers, a critical question has emerged — are these final and binding judgments privately enforceable? Two recent federal decisions, one from the District of Connecticut and one from the Fifth Circuit, have reached opposite conclusions. Guardian Flight LLC v. Aetna Life Ins. Co. , No. 3:24-cv-680-MPS (D. Conn. May 14, 2025):   Private Right of Action Exists In  Guardian Flight LLC v. Aetna Life Insurance Co ., the District of Connecticut addressed whether air ambulance providers could bring suit in court to enforce unpaid or late-...

California Court of Appeal Supports Employers’ Fight Against “Headless” PAGA Actions

  In 2022, the U.S. Supreme Court published its decision in   Viking River Cruises v. Moriana   ( Viking River ), which was hailed as a “Big Win for California Employers.” The decision allowed for partial enforcement of arbitration agreements in actions brought under California’s Private Attorneys General Act (PAGA). The celebration of the “Big Win” was short-lived as the fight over the enforceability of arbitration agreements in PAGA actions continued immediately after   Viking River   was decided. Recently, PAGA plaintiffs began implementing a new anti-arbitration strategy wherein they attempted to bring a representative PAGA action that purportedly excluded the arbitrable portions of a PAGA action . Specifically, the PAGA plaintiffs assert that their representative PAGA action is solely based on alleged Labor Code violations against other,  non-party  employees. The PAGA plaintiff asserts that their PAGA action includes no arbitrable individual clai...

Workplace Law Update: 10 Essential Items on Your August To-Do List

It’s hard to keep up with all the recent changes to labor and employment law, especially since the law always seems to evolve at a rapid pace. In order to ensure you stay on top of the latest changes and have an action plan for compliance, here is a quick review of some critical developments we tracked in July and a c hecklist of the essential items you should consider addressing in August and beyond. _____ Get Ready for the   First-Ever National Heat Safety Rule.  OSHA proposed regulations on July 2 that could soon require you to implement robust measures to safeguard your employees from extreme heat both indoors and outdoors.   The proposal still needs to wind its way through a months-long administrative process and could even be derailed by new standards set by the Supreme Court that take aim at agency overreach, so you’ll want to follow the process closely.  Here are the 10 steps you should consider taking to prepare for the new rule . _____ Prepare for the Impac...