The California Supreme Court granted review last week in Franco v. Arakelian Enterprises Inc., No. S207660, in which the California Court of Appeal had refused to enforce an agreement to arbitrate on an individual basis in the context of a wage-and-hour class action. For more on Franco, please see our prior post. The California Supreme Court explained that it will hold its disposition of Franco pending its decision in Iskanian v. CLS Transportation of Los Angeles, another case involving arbitration and wage-and-hour class actions. We have discussed Iskanian in more detail in a prior post. (We’ve also reported (pdf) on the Court of Appeal’s decision in Iskanian.)
The grant of review in Franco is good news for employers. Many plaintiffs’ lawyers have pointed to Franco in their efforts to avoid arbitration and instead proceed with wage-and-hour class actions in California state courts. And—although we think that Franco is misguided—at least some state courts have been listening. The grant of review in Franco renders the decision non-citable in California courts.