What is arbitration? Arbitration is an out-of-court method for resolving a dispute between a worker and an employer. Arbitration takes place in front of a neutral decision-maker called an “arbitrator” (or in some cases, a group or “panel” of arbitrators) who will listen to each side and make a decision about the case.
Interest arbitration involves the determination of contract terms when the parties are unable to agree on the terms to go into the labor agreement. Rights arbitration involves the interpretation and/or application of existing contract language. Both varieties of arbitration may take different forms.
The first example is a wrongful termination claim. Wrongful terminations are claims against an employer where a former employee feels that they were not fired or terminated correctly for one reason or another.
Under California law, an employer can require its employees to agree to arbitration as a term of employment. However, if the agreement has too many unfair or biased conditions, courts may refuse to enforce the arbitration agreement or chop off the unfair terms.
The Scope of the Clause. This section of the clause is critical; it sets the boundaries for which disputes the tribunal is authorised to determine. Choice of Rules. The Number of Arbitrators. Appointing Authority. Choice of Venue. The language of the proceedings. Finality. Exclusion of the right of appeal.
Under California law, an employer can require its employees to agree to arbitration as a term of employment. However, if the agreement has too many unfair or biased conditions, courts may refuse to enforce the arbitration agreement or chop off the unfair terms.
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.
The new law provides that when a party appeals an order denying a motion to compel arbitration — an order that is immediately appealable — the trial court is not obligated to stay the action during the pendency of the appeal. The law marks a major shift in California civil procedure law.