What is a class action waiver?

A class action waiver is a contractual agreement between two or more parties in which the parties waive their right to file a class action lawsuit. Specifically, a class action waiver requires an individual to address any legal claims or disputes with the other party on an individual basis, meaning that a class action or collective action cannot be raised in court. This waiver typically appears in consumer contracts, such as credit card agreements, cell phone contracts, and employment contracts. In California, employers may require workers to sign a class action waiver as a hiring requirement. This is a controversial issue since class action lawsuits may be the only viable way for some workers to pursue justice for wrongs done to them by their employers - wrongs that would otherwise be difficult or impossible for a worker to pursue on an individual basis. In 2018, the California Supreme Court issued a ruling that class action waivers are indeed permissible in California when used in employment contracts. However, the Court also ruled that waivers must be applied fairly and evenly, and that companies cannot use them to prevent employees from bringing claims on behalf of other employees. As a result, employers must ensure class action waivers are being applied fairly and in accordance with the law.

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What is a class action waiver?

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