The U.S. Supreme Court ruled Tuesday that trucking company New Prime Inc. cannot compel arbitration in a class action alleging it failed to pay independent contractor truck-drivers the proper minimum wage. The Supreme Court found that transportation workers engaged in interstate commerce, including those classified as independent contractors, are exempt from the Federal Arbitration Act (“FAA”).
A Kings County New York Judge has ruled that Uber cannot force arbitration on a customer, finding that Uber had not proven that the customer agreed to arbitrate disputes when she signed up on-line for Uber’s services.
Uber won praise on May 12, 2018, when it announced it would no longer steer sexual misconduct claims into arbitration. However, the announcement failed to note that the company refrained from any promises that it would free victims from arbitration agreements if their claims are part of class action litigation.
A new report authored by Loyola University of New Orleans College of Law Professor Imre S. Szalai, finds that 80 percent of Fortune 100 companies use arbitration in their employment documents, nearly half of which contain class and collective action bans.
The leader of the nation’s largest veterans’ service organization expressed concern over the loss of financial protections for veterans and service members in the wake of a U.S. Senate late night vote on Wednesday.
Senate Republicans narrowly passed a resolution to kill a recently adopted Consumer Financial Protection Bureau (CFPB) rule prohibiting financial firms from requiring customers to resolve any disputes with the firms through individual arbitrations.
In an opinion article in The Hill, CFPB Chairman Richard Cordray explains why the statements being made by OCC head Noreika are false. Here is the link.
Many articles are now appearing pointing out that Georgia Representative Loudermilk proposed a bill to gut the regulations applicable to Equifax (which is headquartered in Georgia) just before the data breach became public. Here are links to the articles:
David Lazarus, a business reporter for the L.A. Times, wrote an article stating that consumers are just now becoming aware of the forced arbitration issue because of the Equifax attempt to force consumers whose data had been stolen to waive their right to bring cases in court by inserting a forced arbitration clause in the small print of a credit monitoring product that was offered as a remedy for the breach.
The U.S. Circuit Court of Appeals for the Ninth District recently reversed a District Court decision that forced Verizon customers into an arbitration against a different company, Turn, Inc.
A recent article in the Huffington Post explains why the CFPB Rule banning forced arbitration is so important. Here is the link.
An interesting article in the American Banker Magazine says that the hoopla surrounding the Equifax data breach, including Equifax’s efforts to force consumers into arbitration after the data breach, may mean doom for GOP efforts to reverse the rule adopted by the CFPB that bans forced arbitration and class action waivers.
A new report issued by Level Playing Field shows that only 5 consumers have filed arbitrations against Equifax since 2009.
Richard Cordray has penned an Op-Ed in the New York Times entitled “Let Consumers Sue Companies.”
A brief remark from SEC Commissioner Michael Piwowar during a July 17, 2017, Q&A suggests that he believes the U.S. Securities and Exchange Commission might soon allow companies to introduce mandatory arbitration clauses into their corporate charters.
The Multi-State letter opposes restrictions Congress is contemplating on a new rule passed by the CFPB that would prohibit banks from requiring consumers to waive their right to seek redress in court.
The Economic Policy Institute just released a fact sheet debunking industry claims that consumers recover more money in arbitration than class actions.
On July 20, 2017, Congressional Republicans began a process to attempt to eliminate a Consumer Financial Protection Bureau rule that stops companies from putting class action bans in their arbitration clauses and makes it easier for consumers to sue banks, credit card firms, payday lenders and other service providers in court.
Paul Bland has written an excellent article in The Hill that reviews the background behind the publication of the new CFPB rule banning mandatory arbitration, and addresses the merits and criticisms of the new rule.