High Court’s Arbitration Ruling Gets Michaels 9th Circuit Test

A former Michaels Stores Inc. employee’s attempt to revive her wage-and-hour class action will provide an early test for a recent US Supreme Court decision limiting procedural rules on transferring lawsuits into arbitration.

The US Court of Appeals for the Ninth Circuit, which will hear oral argument in the case Tuesday, asked parties for supplemental briefing specifically on the effect of the high court’s unanimous May decision in Morgan v. Sundance.

That ruling held that courts can’t make special arbitration-specific procedural rules based on the Federal Arbitration Act’s “policy favoring arbitration,” specifically barring tests that tie whether a defendant ...