Many employers rely on arbitration agreements with class action waivers, provisions that prevent employees from filing or joining collective lawsuits, to manage wage and hour litigation risk. That strategy works reliably in states like California where courts typically uphold arbitration agreements with class action waivers. In Washington, however, courts disfavor class action waivers and arbitration agreements generally, and will invalidate such agreements when employees lacked a meaningful opportunity to review and agree to their terms. This refusal to enforce arbitration agreements or class action waivers creates a gap exposing employers to potential class action risk .[1]
[1] See Burnett v. Pagliacci Pizza, Inc., 196 Wash. 2d 38 (2020) (refusing to enforce arbitration clause in employee handbook when employer failed to provide separate, conspicuous notice).
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