Regarding class action waivers

I did some research and correct me if I’m wrong but those kinds of binding documents are becoming negligent in courts now right?

"While companies may require customers or employees to sign class action waivers, the validity of such contracts is often challenged in court.

Courts often rule that class action waivers are unenforceable in lawsuits involving allegations of employment discrimination, unpaid overtime, or minimum wage violations."

Source - https://www.classaction.org/learn/class-action-waivers

However, other sites claim that corporations can still use them.

“Companies can require their workers go through arbitration to pursue any legal claims against their employers, rather than go to court or join together in class lawsuits or grievances, the U.S. Supreme Court held today in a 5-4 vote.”

Source - https://news.bloomberglaw.com/daily-labor-report/companies-get-green-light-to-use-class-action-waivers

Can you give me your feedback on it based on the findings of your research please, when you have the time?

Thanks in advance.

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In a lawsuit it’s not uncommon for parts of the terms of service to be called into question or considered invalid, including class action waivers. In fact, in terms of service there is almost always a severability clause where if one part of the binding document is found invalid or unenforceable, the rest of the document is to be enforced. If you do sue a company in a class action and it happens to be against the terms of service, they will definitely mention it in court to avoid that type of suit. There is a chance however that it may be deemed unenforceable but it must meet certain requirements:
“These web agreements are legal, but if not properly executed, they might be invalid. Forbes writes that in order for a company’s waiver to be enforceable, it must:
Communicate all terms clearly;
Make users scroll through its conditions before they can agree;
Prohibit the use of its services before agreeing to its terms;
and periodically have users reconfirm their agreements.”
Source- https://www.classaction.org/blog/what-makes-a-class-action-waiver-invalid

So if the service meets the criteria, it has a chance of upholding in court but if it doesn’t properly notify or inform the customer or employee it can be challenged.

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First of all, thank you for your response :slight_smile:

I had a small texting session w/ a lawyer who I think lives in California :slight_smile:

“Like I said it’s all state law. In CA digital disclaimers are treated the same as any written disclaimer. You would see the small box you have to check at the bottom of the doc.
Class action lawsuits aren’t just automatic. A group can’t just get together as a class and sue. In CA the group has to apply for class certification to the courts and the court decides whether or not to certify the group as a class.”

So the way I’ve comprehended this is -
If they do sign it then they are responsible for it. However, they can file a lawsuit
because it’s their right and the lawyer representing them will review the waiver and see
if it breaks any federal laws.
If it does break any laws, then the waiver will be invalid. Most of the time if signed, its
legit and the person will be compensated for the losses, he/she suffered.
Companies make action waivers to protect themselves. Especially credit card companies
because a lot of fraud happens
It always depends on the state, country, and provincial rules and laws when a lawsuit for
waivers happen because that’s the client’s advantage
Companies however are not dumb, so they review the laws and then create their
waiver, so they have some sort of power if things do go to courts.

I think this pretty much sums it up. :slight_smile:

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