ArentFox Schiff's 2023 Class Action Year in Review

ArentFox Schiff's annual review of significant developments and trends that shaped class action litigation in 2023 has major implications for companies across the country.

From labor and employment disputes to landmark decisions under the Illinois Biometric Information Privacy Act (BIPA), we outline the potential impact to key sectors. In addition, our team examines the rise of class action lawsuits under state wiretapping laws, including the California Invasion of Privacy Act (CIPA) and the implications of exemptions in the Federal Arbitration Act (FAA) for companies. Click the article links below to read our analysis on each issue.

Labor & Employment

The use of arbitration agreements between employers and employees is a long-standing practice that has become an integral part of employment dispute resolution across the country. Employers often use arbitration agreements because arbitration offers a streamlined, confidential, faster, and more efficient way to resolve disputes with current and former employees.

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Privacy, Cybersecurity & Data Protection

2023 was another eventful year for class action litigation under the Illinois Biometric Information Privacy Act (BIPA). The Illinois Supreme Court issued two long-awaited decisions, holding that BIPA claims are subject to a five-year statute of limitations and that a separate claim accrues for each scan or transmission of biometric data in violation of BIPA.

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In 2023, we saw the continued proliferation of class action lawsuits filed by “consumer watchdog” plaintiffs under state wiretapping laws, particularly the California Invasion of Privacy Act (CIPA), against website operators that use standard online technologies, such as chat boxes and cookies — the latter of which do not even monitor “communications.”

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It is common practice for companies to utilize agreements requiring arbitration on an individual basis to avoid or limit the risk, burden, and expense of class and collective actions. However, an exemption in Section 1 of the Federal Arbitration Act (FAA) for workers “engaged in foreign or interstate commerce” often allows such workers to avoid their arbitration obligations and pursue their claims through class actions.

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