Originally from Dispute Resolution Journal

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Earlier this year, the U.S. Supreme Court handed businesses a major victory when it decided, in AT&T Mobility, LLC v. Concepcion,1 that class arbitration waivers stand “as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress.”2 As a result, the Court held that the Federal Arbitration Act (FAA) preempts California’s law making such waivers unconscionable and enforceable. This decision, and the state and federal court decisions that have followed it, provide the opportunity for businesses to reconsider the use of such waivers in mandatory arbitration agreements, particularly those in consumer and employment contracts.