Many Employers in California have relied, and continue to rely, on arbitration agreements with employees in order to avoid the great expense of wage and hour class actions. In 2011, the United States Supreme Court ruled in ATamp;T Mobility v. Concepcion that Californias anti-arbitration rule (...
Last week the California Court of Appeal held that an employer's mandatory arbitration policy was unenforceable because it was unconscionable (i.e. too one-sided and unfair to be enforced). The opinion is a good reminder that simply having an arbitration agreement does not need mean it will be enforceable when a dispute arises.
Employers are increasingly using arbitration agreements as a strategy to mitigate the risks of potentially costly litigation. Generally speaking, there are several benefits for employers to consider when deciding whether to adopt an arbitration policy. A few of these benefits, and their limitations, are described in this blog post.
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