An arbitration agreement is an agreement between employers and their employees to resolve any differences in front of a private arbitrator rather than a lawsuit in civil court. Arbitration agreements are usually found in an employee's paperwork when they are first hired. In most cases, their employer never tells the employee that they are obligated to arbitrate in the event of a dispute, let alone explain what that means.
As of 2020, California law allows employees and job applicants to refuse to sign their employer's arbitration agreement. If they refuse, the employer cannot retaliate in any way or deny them employment. But employees with preexisting arbitration agreements must honor them.
Arbitration is governed by both state and federal law. In fact, California law often conflicts with federal law, and changes to the law are ongoing. Employers view arbitration as more efficient, cheaper, and singapore email list faster, but employee rights are often left behind. Arbitrators often side with employees, and may not take their rights as seriously as a California court would.
Below, our California employment law attorneys address frequently asked questions about arbitration agreements and how they may affect your case:
1. What is an arbitration agreement?
1.1 What is the arbitration process?
2. Why do employers require employees to sign arbitration agreements?
2.1 Who chooses the referee?
2.2 Who pays the arbitration fees?
3. What laws govern arbitration agreements?
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