Sellers

INTRODUCTION

Brittany Sellers brought a class action lawsuit against World Financial Group, Inc. and World Financial Group Insurance Agency, Inc. (together, WFG), asserting WFG unlawfully misclassified her and other WFG “associates” as independent contractors to avoid compliance with the California Labor Code. WFG moved to compel individual arbitration of Sellers’ claims pursuant to the Federal Arbitration Act (FAA) and Code of Civil Procedure section 1281.2, to dismiss the putative class claims, and to stay the claim for civil penalties under the Labor Code Private Attorneys

General Act of 2004 (PAGA) (Lab. Code,1 § 2698 et seq.) pending the outcome of arbitration. WFG asserted Sellers was bound by a valid and enforceable arbitration provision contained in an agreement she electronically signed via DocuSign to commence her relationship with WFG. The trial court denied WFG’s motion to compel arbitration, finding the arbitration provision was both procedurally and substantively unconscionable. Because it further found the unconscionability permeated the arbitration provision, the trial court declined to sever the unconscionable terms, and determined the arbitration provision was…