Most California workers don’t even think about what will happen if they lose their job, or even how they’ll be able to fix any problems that may come up during their employment. Arbitration agreements are one way that you and your employer can navigate these potential issues. In the context of employment, an arbitration agreement is a contract that you and your employer enter into where you both agree that you’ll resolve any potential issue with an arbitrator rather than the legal system.

Obviously, there are benefits and drawbacks to this approach. The vast majority of these agreements are included with any job offer, and go into effect when you accept a job. Still, it’s extremely important for you to understand how these agreements apply to situations where your workplace rights are violated.

Maison Law Stands Up For the Rights of California Workers

Workplaces throughout California have conditions and environments that violate the law, all of which can make you feel isolated and alone at work. At Maison Law, we want you to know that you’re not alone. Our team of experienced and dedicated California employment lawyers will be there to stand up for your rights and provide you with the support you need in these unfortunate situations. We can help you navigate the arbitration process to make sure you get the treatment and result you deserve. To set up a free, no-obligation consultation, contact us today.

What Is An Arbitration Agreement in California?

In terms of employment in California, arbitration agreements are legally binding contracts between you and your employer that require any disputes to be resolved through arbitration rather than through the court system.

These agreements are often included as part of the job offer and may be presented to the employee as a standalone document or as part of an employment contract.

Like any agreement, there are benefits and drawbacks to arbitration agreements. These include:

Benefits

Efficiency – Arbitration can be faster and less expensive than litigation in court, as it often involves less pre-trial discovery and streamlined procedures.
Expertise – Arbitrators are often experienced in the field in which the dispute arises, which can result in a more informed and predictable outcome.
Privacy – Unlike court proceedings, arbitration is usually private and confidential, which can help protect sensitive information from becoming public.
Customization – You and your employer can often customize the arbitration process to fit their needs, including selecting the arbitrator and defining the scope of disputes to be resolved.

Drawbacks

Limited discovery – Arbitration typically involves more limited discovery than litigation, which can make it difficult for parties to fully investigate and prove their claims.
Limited rights to appeal – In most cases, the decision of the arbitrator is final and binding, which means that parties may have limited rights to appeal an unfavorable outcome.
Cost-shifting – In some cases, the cost of arbitration may be shifted to the employee, which could be prohibitive if you are a lower-wage worker.
Waiver of rights – Arbitration agreements may require employees to waive their rights to pursue certain claims in court, including class action claims or the right to a jury trial.

As an employee, arbitration agreements may be part of the process of you getting the job. Still, even if you’ve signed one, it’s important to understand the legal requirements that make an arbitration agreement enforceable.

Legal Requirements For A California Arbitration Agreement

On its face, it may seem like arbitration agreements are in place to protect employers from expensive lawsuits if your or any other employee’s workplace rights are violated. Indeed, this is part of the reason to put these agreements in place. Companies and businesses are always looking for ways to protect themselves, especially in larger, more diverse workplaces with a lot of different employees.

That said, there are specific legal requirements in place that make these agreements are enforceable in California, which include:

Written agreement – The arbitration agreement must be in writing and must be presented clearly and understandably.
Voluntary agreement – The agreement must be voluntary and not a condition of employment. The employee must have the opportunity to opt-out of the agreement within a reasonable time frame.
Unconscionability – The agreement cannot be unconscionable, which means that it cannot be so one-sided or oppressive that it is unfair to the employee. For example, an arbitration agreement that waives an employee’s right to pursue certain types of claims or limits the remedies available to them may be found to be unconscionable.
Scope of the agreement – The agreement must clearly define the scope of disputes that are subject to arbitration.
Notice – The employee must be given adequate notice of the agreement and its terms.
Right to representation – The employee must be given the right to be represented by a lawyer or other representative during the arbitration process.
Statutory rights – The agreement cannot waive an employee’s substantive statutory rights, such as the right to file a complaint with a government agency or the right to pursue certain types of claims.
Costs – The agreement must provide for a neutral forum, a neutral arbitrator, and a fair process, and cannot impose costs on the employee that would be prohibitive.

These requirements are extremely important for both the employer and employee to not only make sure the agreement is fair to both sides but that both you and your employer know how to approach the process if it’s needed.

What is the Arbitration Process During an Employment Dispute in California?

Again, it’s worth remembering that an arbitration agreement doesn’t expressly give your employer the ability to get away with violating your rights to a workplace free of discrimination, harassment, retaliation, or any other area of employment law. Rather, a good way of looking at it is that the arbitration process is simply a different way of dealing with any issues. Thus, as an employee, you have the same rights and protections under the law even if there is an arbitration agreement in place.

Still, it’s helpful to understand how the process works so that you can still take measures to protect your rights. Here are the basic steps of the employment arbitration process in California:

Initiation of arbitration – Either party can initiate the process by sending a written demand for arbitration to the other party. This demand should include a description of the dispute and the relief sought.
Selection of arbitrator – The parties usually select a single arbitrator, either through mutual agreement or by using an arbitration service to select a qualified arbitrator.
Pre-hearing procedures – The parties may engage in discovery, which includes exchanging documents and taking depositions, to prepare for the hearing.
Arbitration hearing – The hearing is conducted similarly to a trial, with opening statements, presentation of evidence, witness testimony, and closing arguments. The arbitrator may allow cross-examination of witnesses and may ask questions of the parties and witnesses.
Arbitration decision – After considering the evidence and arguments presented at the hearing, the arbitrator makes a decision, which is usually binding on the parties.
Court confirmation – If either party fails to comply with the arbitrator’s decision, the other party can seek court confirmation of the award. Once confirmed, the arbitration award has the same force and effect as a judgment of the court.

Overall, this process is commonly used in a variety of workplace disputes, such as discrimination claims, wage and hour violations, and wrongful termination claims. While it can be a quicker and less expensive way to resolve these issues than going to court, it’s important to note that the decision of the arbitrator is usually final and cannot be appealed.

Thus, making sure to exercise your right to experienced representation from our team can protect your rights and ensure that you get the result you want.

Experienced California Employment Lawyers You Can Trust

At Maison Law, we understand how important your workplace rights are. Not only do they protect you from unfair and illegal treatment, but they make going to work a productive experience. Still, issues and workplace violations can always come up. If this happens to you and you’ve signed an arbitration agreement, you can put your trust in our team of experienced California employment lawyers.

Whether you’ve been wrongfully terminated, harassed, or discriminated against, we have the knowledge and experience to help you get the justice you deserve. Don’t let your employer or anyone else take advantage of your rights – contact us today to schedule a free, no-obligation consultation to get started.

What Is An Arbitration Agreement?