28 Feb Mandatory Arbitration Clauses
Mandatory arbitration clauses are contractual provisions that require you to submit any claims to arbitration instead of going to court.
There are some exceptions to what can be forced into arbitration. One exception for now is representative actions under the Private Attorney’s General Act or PAGA. PAGA is a California law that basically deputizes individuals to seek penalties against employers that violate the California labor code. There are a few other minor exceptions, all within the State context.
It is a little more complicated in the Federal context due to certain executive actions by the President. But, in the context of the state of California, it depends on what the arbitration agreement says. Most arbitration agreements are so broad that they include almost any kind of claim that can be forced into arbitration, and it doesn’t matter how egregious the conduct of the employer is; if there is an agreement between the employer and employee to arbitrate that type of claim, and there almost always is, then it can still be forced into arbitration. In that scenario, there is no way to get out of the arbitration agreement unless there is actually something unconscionable with the arbitration agreement itself.
In terms of the types of claims or how egregious the claims are, it doesn’t really have an impact upon whether or not an employee will be forced to enter arbitration.
If you have questions about a mandatory arbitration clause, contact the Khadder Law Firm today.