HR That Works Blog

We advise all our Members to use stand-alone arbitration agreements, if they use them at all. Here’s one reason why: http://www.courtinfo.ca.gov/opinions/documents/H036242.PDF. This is also a good case to learn about these agreements in general.

In another case, the California Court struck down a portion of the arbitration agreement related to class action and representative action under the Private Attorney General Act. http://www.courtinfo.ca.gov/opinions/documents/B222689.PDF

Lesson for employers: Get a lawyer who stays up on these laws to draft your arbitration agreement so that it complies with the constant scrutiny of the courts. Unfortunately, it’s gotten to a point where even the lawyers can’t guarantee it still won’t get thrown out! All they can guarantee is the first fight will be over the enforceability of the agreement. If that’s the case are they really still worth it?

Seems like there isn’t an arbitration agreement the California courts like. This time, one used by the California Association of Realtors was struck down (http://www.courtinfo.ca.gov/opinions/documents/G042404.PDF). Know this: If you are going to have somebody sign an arbitration agreement, get some legal counsel to review the agreement…and even then, keep your fingers crossed. In this case, the court didn’t like how it was presented (here, sign this) and they didn’t like the fact that a losing plaintiff may have to pay costs beyond that imposed in a jury case (think of that, having to pay for bringing a poor claim). My personal belief is that the courts should move as many of these cases into arbitration as possible. Arbitration was the “traditional” way of resolving workplace disputes for 40 years before the civil rights laws came along. If properly managed, arbitration can save time, reduce expenses, reduce the impact on the organization and employee as a whole, control runaway verdicts, and make for a saner working experience.