California Labor &
Employment Law Blog
California Court of Appeal Upholds Arbitration Agreement Under FAA Preemption 
Jul 22, 2022

California Court of Appeal Upholds Arbitration Agreement Under FAA Preemption 

Topics: Arbitration Agreements, Court Decisions, Wage & Hour Issues

Evenskaas v. California Transit Inc. reversed a Los Angeles Superior Court judge’s denial of an employer’s motion to compel arbitration of a former employee’s wage and hour class action. The trial court had concluded that the arbitration agreement included an illegal class waiver rendering the agreement unenforceable under Gentry v. Superior Court, 42. Cal.4th 433 (2007). However, the Court of Appeal on July 15, 2022, concluded that the Federal Arbitration Act applied and preempted California caselaw.

In a failing effort to assert that interstate commerce had not occurred, the plaintiff focused on the employer’s services occurring within Los Angeles County. However, the Court concluded that the paratransit services that the employer-provided involved interstate commerce as transportation is an “inherently commercial activity” that makes use of highways and vehicles, the services facilitated economic activity by the passengers and because the employer was providing services that were mandated by federal law, the Americans with Disabilities Act. 

Employers are cautioned to examine their arbitration agreements and any class waivers and to undertake efforts to ensure that Courts will recognize the extent to which those employers' services are involved in interstate commerce to leverage FAA preemption over California caselaw that may otherwise limit the enforceability of an arbitration agreement.  

Feel free to contact your favorite CDF attorney to schedule a consultation.

About CDF

For over 25 years, CDF has distinguished itself as one of the top employment, labor and immigration firms in California, representing employers in single-plaintiff and class action lawsuits and advising employers on related legal compliance and risk avoidance. We cover the state, with five locations from Sacramento to San Diego.

> visit primary site

About the Editor in Chief

Sacramento Office Managing Partner and Chair of CDF’s Traditional Labor Law Practice Group. Mark has been practicing labor and employment law in California for thirty years. His practice has a special emphasis on the representation of California employers in union-management relations and handling federal and state court litigation and administrative matters triggered by all types of employment-related disputes. He is also adept at providing creative and practical legal advice to help minimize the risks inherent in employing workers in California. He recently named “Sacramento Lawyer of the Year” in Employment Law-Management for 2021 by Best Lawyers®.
> Full Bio   > Email   Call 916.361.0991

CDF Labor Law LLP © 2022

Editorial Board About CDF What We Do Contact Us Attorney Advertising Disclaimer Privacy Policy Cookie Policy