On Jan. 28, 2026, the Ninth Circuit Court of Appeals in Avery v. TEKsystems, Inc. affirmed a district court order refusing to enforce an arbitration agreement rolled out during class litigation. The court found that the agreement contained misleading, harmful, and inaccurate information, and that it subverted federal rules by turning the federal class action opt-out procedure into an opt-in process. This decision may have implications for employers attempting to defeat class certification by implementing arbitration agreements mid-litigation.
Ninth Circuit Warns California Employers Implementing Arbitration Agreements Mid-Litigation