You've Got a Class Action Waiver!

The Workplace Prof Blog links to a First Circuit decision invalidating a class action waiver contained in an employer policy promulgated via email. 

Plaintiffs brought a class action alleging fair labor violations.  The employer moved to compel arbitration on an individual basis, based on class action waiver language contained in an employer policy.  The district court found the waiver unconscionable substantively and procedurally.  The First Circuit affirmed, based on procedural unconscionability.  The court focused on the manner in which the policy was promulgated -- via email, and with little warning to the employees as to the contents of the policy.  The court's recitation of the facts surrounding adoption of the waiver is something to look to in determining how not to adopt such a policy:

Roughly a year before the plaintiffs left the company, on Tuesday, November 25, 2003, at 11:42am, two days before the Thanksgiving holiday, DRC sent a five-line e-mail to all of its employees asking them to read three attached documents describing the company's new "Dispute Resolution Program".  Nothing in the e-mail mentioned that the attachments constituted modifications to the employees' terms of employment or employment contract, nor that the documents restricted the employees' rights to a judicial forum, nor that they waived class actions. Further, no response to the e-mail was required, nor were employees asked to acknowledge reading the documents. 

The court also highlighted how the emails through which the program were disseminated obscured the class action waiver (particularly when compared to how other policies were adopted).  In the end the court pointed out that its decision should not be construed as precluding adoption of employer policies via email.  Just that in this particular case all of the surrounding circumstances pointed to the fact that the employees really didn’t have a chance to meaningfully review and digest the policy.
 

 
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