Last year we reported on the California Supreme Court's decision that class action waivers in employment contracts are enforceable in California notwithstanding unconscionability or State public policy to the contrary when the Federal Arbitration Act (“FAA”) applies.
If you are in a contract containing an arbitration clause naming the AAA Rules, you may still be able to bring your dispute in small claims court instead of arbitration, as long as the claim falls within the jurisdiction requirements of the small claims court.
If you've been sued for a debt, check your credit card agreement for an arbitration clause and file a Motion to Compel Arbitration into the case to avoid going to court. To find your arbitration clause, read the fine print, look for dispute resolution key terms, and utilize the CFPB's credit card agreement database.
In some instances, you may be able to sue if you signed a valid arbitration agreement. While courts generally favor arbitration agreements, they will allow you to file a lawsuit if either you didn't understand your rights or your claims fall outside the arbitration provision's scope.
2711) requires agreements to arbitrate to be in writing to be enforceable, there is nothing in the Statute that requires signatures to be on those written agreements.
Under California law, you cannot be fired solely for refusing to sign an arbitration agreement. The California Labor Code provides strong protections for employees, ensuring that refusal to sign an arbitration agreement cannot be used as grounds for termination.
If neither party appeals the decision, it will be binding, like an order by a judge. However, a party unhappy with the arbitrator's decision can request a new trial before a judge.
Businesses can no longer require that consumers arbitrate outside of California a claim arising in California. The new law also prohibits arbitrating a controversy arising in California under the substantive law of a state other than California.
The court said the state law is preempted by the Federal Arbitration Act (FAA). As a result, Assembly Bill 51 no longer stands as an obstacle to employers that wish to require arbitration agreements as a condition of employment in California, so long as the FAA applies and governs the agreement.
In 2014, the California Supreme Court ruled that class action waivers were permissible under the Federal Arbitration Act (“FAA”), and that the FAA preempted state laws to the contrary.