Right to Seek Public Injunctive Relief Is Unwaivable in California

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Last month, the California Supreme Court held that an arbitration agreement that bars right to seek public injunctive relief is unenforceable as contrary to California public policy.  In McGill v. Citibank, N.A., the Court distinguished between class action waivers (and the waiver of the right to public injunctive relief.

The Court held that public injunctive relief (e.g., right to injunction under California’s Unfair Competition Law) is an unwaivable substantive statutory remedy.  Although McGill sued a credit card issuer, not her employer, this decision is still important to employment law practitioners.  California courts will reject pre-dispute waivers of rights that inure to the public good.