California Employment Law Blog

Untimely Tesla: How Missed Fee Payments Can Impact Arbitration Agreements

Posted by Timothy B. Del Castillo | Jul 03, 2024 | 0 Comments

In the case of Dominique Keeton v. Tesla, Inc., the Court of Appeal ruled that Tesla’s failure to pay arbitration fees on time breached its arbitration agreement, allowing an employee to pursue her claims in court. The decision emphasizes the necessity for employers to comply with arbitration agreements and deadlines to avoid unwanted litigation.

The Clock is Ticking: Implications of Late Payments in Arbitration

Posted by Timothy B. Del Castillo | Feb 13, 2024 | 0 Comments

In a recent case, the California Court of Appeal interpreted Section 1281.98 of the California Arbitration Act, emphasizing the 30-day deadline for receiving arbitration fees. The court ruled that fees must be both sent and received within 30 days after the due date, highlighting the importance of timely payments to avoid material breach of arbitration agreements under California law.

Suarez v. Superior Court: Section 1281.97 and Timely Arbitration Payments

Posted by Timothy B. Del Castillo | Jan 28, 2024 | 0 Comments

Under section 1281.97, if an employer fails to pay arbitration fees within 30 days of the due date, it constitutes a "material breach," leading to the forfeiture of arbitration rights. In Suarez v. Superior Court (2024), an employer sought to evade section 1281.97 through alternative filing requirements. The Court of Appeal dismissed the employer's arguments, emphasizing the importance of timely payment for employers to uphold arbitration agreements.

Tough Pill to Swallow: PAGA's Impact on Arbitration Waivers and "Poison Pill" Clauses

Posted by Timothy B. Del Castillo | Jan 26, 2024 | 0 Comments

In Demarinis v. Heritage Bank of Commerce (2023), employees, initially under an arbitration agreement, grappled with complexities tied to PAGA, arbitration waivers, and "poison pill" clauses. This case emphasizes the need for meticulous drafting of arbitration clauses, underscoring the importance of specificity in waiver provisions, as the inclusion of a "poison pill" can lead to an entire arbitration contract being deemed unenforceable.

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