Employment arbitration agreements can determine where and how workplace disputes are resolved. Instead of proceeding in court before a judge or jury, covered claims may be decided by a private arbitrator.
Are Employment Arbitration Agreements Enforceable?
Many employment arbitration agreements are enforceable, but enforceability is fact-specific. Courts may consider contract formation, applicable federal and state law, unconscionability, waiver, statutory restrictions, and the particular language of the agreement.
What Does Arbitration Change?
Arbitration can affect the decision-maker, procedures, discovery, motion practice, hearing format, appellate rights, and sometimes the handling of representative or class claims. The agreement itself matters.
Costs and Fairness
California and federal law impose important rules concerning mandatory employment arbitration, including limitations on shifting arbitration-specific costs to employees in circumstances where the employee would not bear those costs in court.
Do Not Assume You Can Simply Opt Out
Some employers offer opt-out procedures and others do not. Whether an employee can reject or opt out of a particular arbitration program depends on the actual agreement and circumstances. Employees should read the documents rather than assume an opt-out right exists.
Keep a Copy
Save the arbitration agreement, offer letters, onboarding documents, electronic-signature records, handbook acknowledgments, and any emails describing the arbitration program.
Get the Agreement Reviewed
If an employer is attempting to enforce an arbitration agreement, or you have been asked to sign one and have questions about its effect, North Law can review the agreement and discuss your options.