Quick answers

What is an arbitration agreement?

An arbitration agreement is a contract that requires certain workplace disputes to be resolved in arbitration instead of court. In California employment cases, these agreements are often included in hiring packets, onboarding documents, employee handbooks, or standalone employment forms.

• Arbitration: a private legal process where a neutral arbitrator decides the dispute.
• Court: a public legal process before a judge, and in some cases, a jury.

Depending on the situation, an arbitration agreement may affect where a claim is heard, how the case proceeds, and what strategy is required.

How arbitration works

Employment arbitration usually involves a private decision-maker instead of a judge or jury. The process may include written submissions, exchange of evidence, witness testimony, motion practice, and a final decision by the arbitrator.

Common features of arbitration

• A private arbitrator decides the case.
• There is generally no jury.
• The proceeding is usually not public.

Arbitration and employment claims

• Employees may still bring claims involving discrimination, retaliation, harassment, wage and hour violations, and wrongful termination.
• The case may proceed differently than court litigation.
• Arbitration often requires a different legal strategy than court.

When arbitration agreements are enforceable

Arbitration agreements are often enforceable under California and federal law when they are properly formed and otherwise legally valid.

Common considerations

• Whether the agreement was presented and signed.
• Whether the terms are legally valid.
• Whether the agreement meets basic contract requirements.

Why enforceability can be fact-specific

• Enforceability depends on the actual agreement and the circumstances surrounding signature and presentation.
• Courts may examine more than whether a document contains a signature, but a signed agreement is often enforced.

When arbitration agreements may not be enforceable

Some arbitration agreements may not be enforced, but these situations are limited and depend on specific legal standards.

Common legal issues

• Fraud in the execution: the employee was deceived about the nature of the document being signed.
• Contract formation issues: a valid agreement may not have been formed.
• Unconscionability: the agreement contains terms that are legally unfair.

Language and understanding

• Employers are generally not required to provide translations of arbitration agreements.
• However, courts may consider whether a valid agreement was formed based on the specific facts and legal arguments involved.

California appellate authority

California courts have addressed arbitration agreements in employment cases, including situations involving language barriers and whether a valid agreement was formed.

In Najarro v. Superior Court (2021) 70 Cal. App. 5th 871, the Court of Appeal analyzed fraud in the execution in the context of an employment arbitration agreement, focusing on whether the employee understood the nature of the document being signed.

View Najarro v. Superior Court

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Common arbitration issues

• Documents provided only in English.
• Being asked to sign quickly during onboarding (which is common and generally not enough, by itself, to invalidate an agreement).
• Disputes about whether the agreement was actually signed.

These issues do not automatically invalidate an arbitration agreement, but they may become relevant depending on the legal arguments, evidence, and applicable law.

What to do if arbitration is raised in your case

1. Review the agreement carefully.
2. Document how it was presented and what you were told.
3. Preserve all relevant communications and records.
4. Understand how arbitration may affect your legal strategy.

Frequently asked questions