Hoover v. American Income Life Insurance Company

In Hoover v. American Income Life Insurance Company (2012) 206 Cal.App.4th 1193, a sales agent for an insurance company sued her former employer for violations of the Labor Code. (Hoover, supra, 224 Cal.App.4th at pp. 1197, 1199-1200.) The trial court denied the employer's motion to compel arbitration. (Id. at p. 1201.) The Court of Appeal affirmed, holding that the employer waived its right to seek arbitration. (Id. at p. 1198.) The court added that arbitration could not be compelled even in the absence of waiver because the employer had not shown that the contract at issue involved interstate commerce. (Id. at p. 1207.) The court noted that "Hoover was not an employee of a national stock brokerage firm or the employee of a member of a national stock exchange." (Id. at p. 1208.) Thus, "the FAA did not apply and the exception favoring federal preemption and arbitration did not operate." (Ibid.)