In September, we reported on Gentry v. Superior Court (September 10, 2007 FEB Publication), where the California Supreme Court articulated a test to determine whether a class action waiver in an employer-employee arbitration agreement is enforceable. In a recent appellate court decision, Murphy v. Check 'N Go of California, Inc., the court applied Gentry and invalidated a class action waiver on the grounds that prospective class members would have difficulty obtaining individual counsel; the potential for retaliation against current employees existed; and many prospective class members might be ill-informed of their rights. However, the court went one step further and invalidated the entire arbitration agreement (despite the existence of a severability clause), concluding that it was "permeated by an unlawful purpose," based in part on the fact that the agreement precluded the courts from assessing unconscionability. This decision is an important reminder that employers must regularly examine their arbitration language to ensure enforceability.