From the Daily Labor Report:

“The U.S. Supreme Court lets stand the California Court of Appeal’s decision
that an arbitration agreement between a trash company and a driver that waives
class claims and prohibits the employee from seeking civil penalties on behalf
of other workers is unconscionable and so tainted with illegality that it is
unenforceable (Athens Disposal Co. d/b/a Athens Services v. Franco, U.S.,
No. 09-272, cert. denied 1/11/10).

Athens Disposal Co. had asked the justices to reverse the appeals court’s
March 2009 decision denying the company’s motion to compel arbitration and
allowing former employee Edixon Franco to pursue state-law wage and hour claims
in court and seek class certification to proceed on behalf of similarly
situated current and former employees.

The appeals court . . . found that the class arbitration waiver is unconscionable because
“the size of the potential individual recovery is small, the possibility of
retaliation against an employee who files an individual suit exists, and absent
members of the class may be ill informed about their rights.” The appeals court
also found that the arbitration agreement’s prohibition on seeking civil
penalties on behalf of other employees conflicts with California’s Private
Attorneys General Act.”