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California Law Says Mandatory Arbitration Agreements Remain Valid

California employers free to require employees enter into arbitration agreements as condition of employment. opinion from the Ninth Circuit last week that affirmed a trial court decision that had invalidated California Assembly Bill 51 AB 51 before it went into effect. ....

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Delaying Enforcement of Arbitration Agreements

Thursday, January 28, 2021
In
Garcia v. Haralambos Beverage Co., the California Court of Appeal embraced the adage “time kills all deals” to conclude that an employer waived its right to arbitrate the wage-hour claims at issue in the case by, among other things, delaying two years to seek arbitration as a last resort and waiting to locate the plaintiffs’ signed arbitration agreements. By waiving its right to arbitrate, the employer also lost its ability to strike class claims as a result.
Background
In
Garcia, two plaintiffs initiated a potential wage-hour class action against their employer in November 2016. The employer had an arbitration policy in its handbook. Soon after the lawsuit was filed, the employer located checklists pertaining to new-hire documents that confirmed each named plaintiff had received the arbitration policy. ....

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