Nanavati v. Adecco USA, Inc.
99 F. Supp. 3d 1072
N.D. Cal.2015Background
- Adecco USA, Inc. employs temporary workers, including Nanavati, at client sites (Google) for about four months in 2014.
- Plaintiff alleges California Labor Code violations: overtime, meal breaks, wage records, and timely payment upon termination.
- Plaintiff seeks class/collective and PAGA penalties on behalf of similarly situated California employees.
- Defendant removed the case to federal court under CAFA, asserting jurisdiction over a class action.
- Defendant moves to compel arbitration under a Dispute Resolution and Arbitration Agreement signed by Nanavati during onboarding.
- Agreement includes class action waiver (paragraph 7) and PAGA waiver (paragraph 8) and allows opt-out within 30 days.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Validity of the arbitration agreement | Nanavati challenges authenticity/validity of signature | Watson declaration authenticates signature; agreement valid | Agreement proven valid; signature authenticated; claims fall within scope |
| Enforceability of the class action waiver | Waiver conflicts with NLRA §7 protections for concerted activity | Ninth Circuit precedent allows enforceability of class waivers in arbitration | Class waiver enforceable; Johnmohammadi controls; opt-out available but not exercised by Nanavati |
| Enforceability of the PAGA waiver (representative claims) | Iskanian prohibits pre-dispute PAGA waivers; FAA does not preempt state policy | FAA preempts Iskanian; PAGA waiver enforceable | PAGA waiver enforceable under FAA; representative claims may proceed in arbitration if allowed by law; Iskanian is superseded in this context |
| Stay pending arbitration | Request to stay pending NLRB action | FAA requires stay once referable to arbitration | Stay granted; proceedings to arbitration only; all deadlines vacated |
Key Cases Cited
- Ruiz v. Moss Brothers Auto Group, 232 Cal.App.4th 836 (Cal. Ct. App. 2014) (authenticity of signature matters; burden of proof on employer)
- Johnmohammadi v. Bloomingdale's, Inc., 755 F.3d 1072 (9th Cir. 2014) (class waiver not coercive where opt-out available; no coercion in choice to arbitrate)
- Iskanian v. CLS Transp. Los Angeles, LLC, 59 Cal.4th 348 (Cal. 2014) (FAA preemption of ex ante PAGA waivers; Iskanian rule considered persuasive by many courts)
- Concepcion v. California, 563 U.S. 333 (Supreme Court 2011) (FAA preemption; enforcement of arbitration agreements; class action waivers consistent with FAA)
- Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, 473 U.S. 614 (Supreme Court 1985) (arbitration as contract; enforceability under FAA)