The California Supreme Court will hear three cases in which the litigants hope to get clarification on the U.S. Supreme Court's 2011 decision on "unconscionable contracts." The U.S. Supreme Court's ruling in AT&T Mobility v. Concepcion found that a state law in California was pre-empted by the Federal Arbitration Act. In other words, since the ruling, companies have now been allowed to enforce customer arbitration clauses. In addition, the ruling has also allowed some companies to enforce employee arbitration clauses, as well.
The three cases are Iskanian v. CLS Transportation, Wisdom v. AccentCare Inc. and Sonic-Calabasas A Inc. v. Frank Moreno. The last employee lawsuit has already been argued and the plaintiff, a car dealership, wants the court to compel the defendant to arbitration over accrued vacation time payout when the employee left the company. The defendant wants the dispute taken before the labor commissioner instead, which is called the Berman process. The dealership believes the Federal Arbitration Act trumps the Berman process and should require the enforcement of the arbitration agreement.