Marenco v. DirecTV, LLC
Annotate this CaseBefore it was acquired by DirecTV, 180 Connect entered into an employment arbitration agreement with Marenco, which prohibited filing a class or collective action, or a representative or private attorney general action. After acquiring 180 Connect, DirecTV retained employees, including Marenco. Marenco later filed suit, alleging that DirecTV had issued debit cards in payment of wages to a putative class of employees. Plaintiffs who used their cards to withdraw cash at ATM machines were required to pay an activation fee and a cash withdrawal fee, resulting in DirecTV’s failure to pay plaintiffs’ full wages in violation of the Unfair Competition Law and Labor Code 212. DirecTV moved to compel arbitration of Marenco’s individual claims, and stay the class claims. Marenco argued that DirecTV lacked standing to enforce the agreement and that the agreement was unconscionable and unenforceable under California law. The U.S. Supreme Court then issued its 2011 decision, AT&T Mobility v. Concepcion, holding that the Federal Arbitration Act preempts the California rule of unconscionability. The trial court ordered arbitration of Marenco’s individual claims, holding that DirecTV had standing; the class action waiver is not unconscionable; and prohibition of representative actions does not violate the National Labor Relations Act (29 U.S.C. 157). The court of appeal affirmed.
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