But you should always think about your bargaining power. If a particular employer has been courting you for months, they may be willing to abandon the arbitration agreement to get you involved. According to the study consulted, between twenty and forty percent of employees are subject to arbitration agreements. The mandatory resolution of labour disputes has long been controversial due to economic pressure and unequal bargaining power in labour relations. You have the right to refuse to sign an arbitration agreement, but your workplace could be at risk. Your employer can withdraw your job offer if you do not sign the agreement. Employees at will who refuse to sign the agreements may be fired. Typically, an arbitration agreement is presented to someone at the time of hiring (either as part of a longer employment contract or as a separate document). But sometimes a company decides to ask current employees to sign an agreement.

In both cases, people often ask themselves: Do I have to sign the agreement? Unfortunately, if signing an employment contract is a condition of employment – whether you`re about to join the company or you`re already an employee – you`ll need to sign it if you want the job. Under California law, as well as the law of any other state, an employer may refuse to hire you (or fire you) if you refuse to consent to arbitration of all of your labor disputes. At the same time, California law requires that an arbitration agreement contain certain conditions to be enforceable. For example, the employer must pay all costs of arbitration, including arbitrators` fees, which can easily amount to tens of thousands of dollars. And an arbitration agreement cannot limit an employee`s rights to « discovery » or the damages that can be recovered. In addition, state and federal courts in California courts have in recent years refused to enforce provisions in arbitration agreements that prevent workers from filing class actions. However, not a single court in California has ruled that it is inappropriate to require a person to sign an arbitration agreement. You probably won`t be able to negotiate an arbitration clause. Even if you are currently covered by an employment contract or collective agreement that does not include arbitration provisions, there is a good chance that you may have to choose between accepting arbitration and giving up a job or employment opportunity. Your agreement should allow you to be represented by a lawyer in the arbitration.

You start filling everything. You stop. One of the documents is an arbitration agreement that states that any claim, dispute, claim or cause of action arising out of or in connection with your employment will be submitted to arbitration, with the arbitrator determining arbitrability and any other procedural or substantive matter other than emergency assistance. There is an indication that both parties are waiving the right to a jury trial and an appeal. It is important that you ensure that the remedies available to you in arbitration are the same as if you had pursued your case in the dispute. For example, you should not be prevented from seeking damages for emotional distress or punitive damages. Even though you can opt out of arbitration if you are covered by an existing contract, once that contract expires, you may be forced to choose between signing an arbitration agreement and finding a new job. Option #2 – Sink or swim: Explain to the employee that the choice is theirs and inform them of the benefits of arbitration, then live with the employee`s choice. The goal is to get a truly voluntary arbitration agreement, but the task is difficult because California courts tend to view employers` comments as inherently compulsive.

However, the voluntary nature of the agreement could be further demonstrated by providing an additional payment or benefit to employees who sign the arbitration agreement. Arbitration also offers people certain advantages. The process is not as formal as what happens in a court case. This can make the process easier for everyone. Cases that are brought before arbitration are also decided more quickly than those that are heard before the courts. While the concept of arbitration sounds a bit confusing, it doesn`t have to be. You can learn with the click of a button. An experienced labor attorney can answer your questions, advise you on your state`s law, and see how it applies to your situation. If your employment contract contains an arbitration clause, it means that you have agreed not to take legal action against your employer. Instead, any dispute you have with your employer must be resolved through a process known as arbitration. Since employers want arbitration, they should be the ones who should pay for it.

Due to the lack of legal clarity, the best approach is not to fire an employee who refuses to sign an arbitration agreement and to run the risk that in the event of a class action, there may be employees whose claims are not subject to arbitration (a risk that could be further reduced if the employer offers an additional payment or benefit). Seyfarth is here to help in case you are considering introducing an arbitration agreement, or if you already have a storm on the horizon and are expecting. You should be able to have the same influence on the selection of an arbitrator, because the arbitrator has a lot of power and you will not be able to appeal a decision made. You and your employer should be able to dismiss an arbitrator each without giving reasons. What for? Because the employer is not required to offer an employee a contract without an arbitration clause, and this clause is enforceable on the same basis as other contracts. Even if the employee is not aware of the arbitration clause because it is buried in an employee manual, it will be enforced. (Johnson vs. Long John Silver`s Restaurants, Inc.) While some courts don`t enforce arbitration agreements that you`re not aware of, others will. So read it all. Concerns were raised about the arbitration of anti-discrimination laws and a possible waiver of non-waivable legal rights and remedies.

The U.S. Supreme Court rejected these arguments in Gilmer v. Interstate/Johnson Lane Corp., arguing that the filing of the arbitration was only a change of forum, not a loss of rights. Deciding whether or not to sign an arbitration agreement can be difficult and is often done after talking to colleagues about what others are doing. An experienced labor attorney in California can help you understand your options and advise you on a proposed arbitration agreement. For example, if an employer`s policy was to promote rarely, if ever, employed women could band together to file a class action lawsuit. It can be difficult to prove this type of discrimination on an individual basis, but when they are filed as a group, it is often easier to prove that there is a pattern. For this reason, employers would prefer to settle claims through individual arbitration – a form of alternative dispute resolution where they often have the advantage and where a single employee is less likely to be able to show a pattern of behavior. .