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On March 2, 2021, the United States Court of Appeals for the Ninth Circuit will hear oral argument in a case that could test the boundaries of mandatory arbitration, and determine whether employees can be tethered to arbitration agreements for years after leaving a company.
The potentially precedent-setting decision stems from a single defamation suit brought by former Tesla, Inc. employee Cristina Balan after the tech giant accused her of criminal behavior on the online news source, The Huffington Post.
1 While Tesla’s legal team maintains that all of Balan’s claims must be arbitrated, the U.S. District Court in Seattle disagreed, finding that some of Tesla’s statements to The Huffington Post fell outside the arbitration agreement with its former employee.