Our employment contracts contain an arbitration clause. Is that ok?

Our employment contracts contain an arbitration clause. Is that ok?

Arbitration in California has evolved over the past 20 years.  While the current mood among legislators and in the courts is to invalidate arbitration provisions that were forced on employees, employers can continue to require disputes to be resolved by arbitration.  However, should the agreement be challenged, it is very likely that the agreement itself and the circumstances of its signing will be scrutinized under a legal microscope. Courts are routinely refusing to enforce poorly drafted or outdated arbitration agreements, so now is the time to review your existing employment documents (contracts, handbooks, stand-alone agreements, policies and procedures) to make sure any arbitration agreements are drafted in a way to maximize their enforceability.

If you would like to review your employment documents with an experienced California employment law attorney, or have questions that weren’t answered here, we invite you to contact JDS Law, Inc. to schedule a consultation.

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