Recent California Decisions on Class Action Waivers

Class action litigation of employment-based claims commenced by disgruntled employees against their former employers have been a growing concern for employers across the country, but particularly in California where state statutes provide creative plaintiffs' lawyers with an array of options. In an effort to stave off such actions, some California employers have been including class action waivers in employment agreements. Most recently, class action waiver agreements received a shot in the arm when two California courts ruled that they were enforceable if properly implemented. The first opinion, Gentry v. Superior Court (Circuit City, Real Party in Interest), issued by the California Court of Appeal for the Second District on January 20, 2006, upheld the use of class action waivers in the employment context. The second opinion, Jones v. Citigroup, Inc., handed down by the Fourth District, followed less than a week later on January 26, 2006, sanctioned the use of class action waivers