A class action allows a plaintiff to sue not only on his own behalf, but also on behalf of others similarly affected by a defendant’s misconduct. In the employment context, for example, plaintiffs can bring class actions against employers for violations of labor codes, wage and hour laws, and discrimination laws.
Companies and individuals frequently enter into arbitration agreements requiring that claims be brought before a private arbitrator, rather than a judge and jury. Arbitration has various benefits: it can provide quicker resolutions, reduced costs, the right to participate in the selection of the arbitrator, and arbitral expertise. In addition, some parties prefer arbitration because it offers a cloak of confidentiality that does not exist in the state and federal courts.