Ruling Reinforces Arbitration in Employment Disputes

The California Court of Appeal has reinforced the scope and effectiveness of arbitration clauses in employment agreements. A former employee sued in court. The employer petitioned to compel arbitration based on the employment agreement (which provided for arbitration). The employee opposed on the claim that the arbitration agreement was unconscionable and therefore unenforceable. The trial court denied arbitration.

The appellate court reversed. The arbitration agreement included a provision that any dispute concerning the enforceability of the agreement would be decided by the arbitrator and not the court. The trial court should have ordered arbitration. This is another reason for employers to consider including arbitration in their employment agreements. The case is Tiri v. Lucky Chances, Inc.

The California Court of Appeal has reinforced the scope and effectiveness of arbitration clauses in employment agreements. A former employee sued in court. The employer petitioned to compel arbitration based on the employment agreement (which provided for arbitration). The employee opposed on the claim that the arbitration agreement was unconscionable and therefore unenforceable. The trial […]