Arbitrator To Decide Whether Class Action Relief Is Permitted Under Contract

In Universal Protection Service, LP v. Superior Court (Parnow), the Court of Appeals denied a mandamus petition seeking to set aside an order compelling the employer to submit to arbitration –based on employment agreements drafted by the employer– including submitting to the arbitrator the issue whether class action relief is encompassed by the agreements. The Court concluded that the agreements’ incorporation by reference of the American Arbitration Association’s National Rules for the Resolution of Employment Disputes (AAA Rules) vests the arbitrator with the power to decide the disputed issue.

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