Arbitration agreements are subject to certain rules to ensure applicability under California law and federal law. If an arbitration agreement does not meet these requirements, it may be considered unenforceable. This means that a staff member does not have the right to take legal action instead of being required to mediate under the contractual contract. On October 11 – his very last day to sign bills or veto – Governor Brown vetoed the much-feared House Bill 465. AB 465 would have banned binding agreements for the arbitration of labour rights as a condition of employment. For now at least, employers can breathe with such arbitration programs. We`ve already talked about AB… Employers considering the implementation of an arbitration program should analyze their history of labour disputes over a period of three to five years to determine whether the benefits of an arbitration obligation outweigh the disadvantages and risks. The review should include: many employers require workers to sign exemptions from wage class and class action under the arbitration agreement. This requires an employee to have heard his action on a single basis, and the employee cannot participate in a group effort to take legal action or to mediate. In a subsequent decision, Little v. Auto Stiegler, the Supreme Court extended Armendariz`s common law claims for unlawful dismissal in violation of public order.

It is not certain that an agreement to arbitrate other common law rights (for example). B violation of the tacit contract) must comply with Armendariz`s requirements. Mr. Armendariz also left other issues, such as. B this constitutes a “reasonable” discovery of the costs that an employer may share with the worker and may reserve certain rights to the judgment of a court, such as. B trade secrets breaches. Several appelal courts issued opinions after Armendariz and answered some of these questions. However, the courts have not responded consistently to these questions and it may be necessary for new Supreme Court guidelines to be required. Seyfarth Synopsis: California courts are often hostile to defendants who try to require employees in dispute to abide by their arbitration agreements. The accused`s emergency situation might seem even more serious if the defendant did not sign the agreement himself. But deplored employers still have the means to enforce such agreements, which can be particularly important in collective actions…

A permanent question posed by employers is whether an arbitration decision in an employment contract is applicable in California. In recent times, much of the discussion on this subject has focused on the applicability of class action waiver declarations in arbitration provisions, which generally do not apply to small and medium-sized employers.