Articles Posted in Arbitration

California Appeals Court Rejects Employer’s Arbitration Agreement
The Nourmand Law Firm, APC

Many employers in California require employees to sign mandatory arbitration agreements before commencing employment. Despite California laws prohibiting some employers from requiring these agreements, many still require arbitration agreements. Although some of these are lawful, many contain terms that courts find to be unconscionable, or unenforceable because they do not give the employee meaningful choice.…

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Vacating Compulsory Employment Arbitration Agreements In California
The Nourmand Law Firm, APC

Mandatory arbitration agreements refer to agreements that an employee must sign as a condition of employment. Employers often include these clauses in their employment contracts to hinder an employee’s ability to pursue claims in court in front of a jury. While California’s arbitration ban (AB 51) prohibits certain California employers from requiring employees to sign…

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Collective Bargaining Agreement Used Against Employee to Compel Arbitration of Wage Claims
The Nourmand Law Firm, APC

Professional and trade unions are generally tasked with protecting the rights of their members and maximizing employee negotiating power with owners and management by presenting a united front. Usually, a union will enter into what is known as a “collective bargaining agreement” with an employer. The CBA will set rules that both employees and employers…

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California Court of Appeals Rules that Arbitration Clause is Unconscionable and Unenforceable in Recent Employment Decision
The Nourmand Law Firm, APC

Many corporations and other California employers with large numbers of employees like to use arbitration agreements with their employees to streamline the process of addressing employment law-related issues. At first glance, arbitration agreements offer both employees and employers a simplified process to address grievances between the parties. In practice, however, arbitration agreements function to put…

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California Employee Fends Off Arbitration Clause in PAGA Suit
The Nourmand Law Firm, APC

California employment laws afford workers a variety of protections and legal rights. One of the most essential rights employees have is the right to litigate certain claims against their employer. The main alternative to court for resolving a dispute between an employee and an employer is arbitration. Arbitration uses a supposedly neutral third party to…

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California Court Finds Arbitration Agreement Signed as Precondition to Employment Unconscionable
The Nourmand Law Firm, APC

Although arbitration agreements mean that a case must be resolved through arbitration, not all agreements are enforceable. If a party does not have a real opportunity to negotiate the terms of the contract or a contract heavily favors one party, these may be indications that the agreement is unconscionable and thus, unenforceable. A California court…

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California Court Compels Arbitration After Employee Allegedly Forced to Sign Arbitration Agreement While Lawsuit Pending
The Nourmand Law Firm, APC

An alarming decision from a California appeals court highlights the importance of reviewing any paperwork related to a potential employment claim. In that case, an employee filed a California employment lawsuit against her employers in April 2019. While the case was pending, in December 2019, the employers allegedly told the employee to sign some paperwork…

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Federal Appeals Court in California Finds Arbitration Agreement Does Not Bar FLSA Claim
The Nourmand Law Firm, APC

The Ninth Circuit Court of Appeals recently decided a case involving a Federal Labor Standards Act (FLSA) claim that the employer claimed was barred due to an arbitration agreement between the employer and the alleged employee. The Ninth Circuit Court of Appeals is a federal appeals court located in San Francisco, California, and has jurisdiction…

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