Can I Be Forced to Sign an Arbitration Agreement in California?
Many employees are asked to sign arbitration agreements as part of getting or keeping a job. The answer is not always straightforward.
Short answer
In many situations, yes. Employers can often require arbitration agreements as a condition of employment.
What if you refuse to sign?
- An employer may choose not to hire you
- An employer may require signing to keep your job
- Some situations may raise legal issues depending on how the agreement is presented
What if the employer says you “accepted” by staying?
Some employers try to use what is sometimes called passive assent. That usually means the employer gives notice of an arbitration agreement and says that if you keep working for a stated period, such as five more days, your continued employment will be treated as acceptance.
Under California law, that kind of argument can sometimes work if the employer clearly communicated that continued employment would count as assent and the employee kept working after that notice.
But it is not automatic. Enforceability can still depend on whether the notice was clear, whether the employee clearly rejected the agreement, and whether the document was presented as a real agreement instead of just handbook policy language.
What does signing usually mean?
- Your case may be handled in arbitration instead of court
- You may not have a jury trial
- You may still have legal claims
When signing may still be challenged
- The employee did not understand what they were signing
- The agreement was not clearly explained
- There were issues with how the document was presented
What to do before signing
- Read the agreement carefully
- Ask questions if something is unclear
- Ask for a copy
- Note how it was explained to you