TEKsystems, Inc. (TEK), a staffing company, implemented the agreement over 22 months after plaintiffs filed a putative class action alleging California wage-and-hour violations; it automatically bound putative class members via continued employment unless they opted out by January 9, 2024, or quit.[1][2][3] The rollout involved two emails: a company-wide message disparaging class actions as "wasteful," "inefficient," and enriching only attorneys, followed by a class-specific notice tying opt-out to staying in the litigation, sent just before holidays with limited time for response.[3][4][5][9] Key players include plaintiffs (led by Avery), TEKsystems, the U.S. District Court, and the Ninth Circuit Court of Appeals; the ruling cites FRCP 23(d), which empowers courts to regulate class proceedings, and contrasts with Sandler v. Modernizing Medicine, Inc. (2026).[1][2][5]
The class action began before late 2023; TEK rolled out the agreement around mid-December 2023 (effective January 1, 2024) after class certification briefing closed and extensive discovery; the district court certified the class in February 2024, approved notice (opt-out by June 15, 2024), and denied compulsion; TEK appealed, with the Ninth Circuit affirming on January 28, 2026.[3][4][5] The court held TEK flipped FRCP 23's opt-out presumption into an opt-in for litigation, used one-sided messaging to discourage participation, and allowed judicial review despite a delegation clause since the entire agreement was challenged.[1][2][4][9]
Newsworthy on April 6, 2026, due to fresh analysis warning California employers against mid-litigation arbitration rollouts without court approval, as it risks invalidation under FRCP 23(d) and highlights tensions with the Federal Arbitration Act amid strategies to defeat class certification.[2][3][4][5][9]