BACKGROUND In early 2014, Big Brain Solutions hired Liz Bennett and Ralph Nickleby as administrative assistants. During their onboarding, Ms. Bennett and Mr. Nickleby signed contracts which stipulated that “if there is any dispute as to employment practice or employee/employer actions, this dispute will be decided via binding arbitration.” Both were given adequate time to review the agreement and consultant an attorney. Several months later , Mr. Nickleby became addicted to cocaine and Ms. Bennett became pregnant. Ms. Bennett experienced pregnancy complications and Big Brain Solutions initially granted her medical leave; however, after a short period of time, the company informed Liz that her position was eliminated due to a reorganization.
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(Cite) Notably, California is absent from that list. Additionally, California case law is wrought with courts opposing the enforceability of arbitration agreements in certain …show more content…
Are there times when an arbitration clause might be invalid or unenforceable against an employee?
Generally, the courts favor arbitration and arbitration agreements are enforced. The Federal Arbitration Act was passed by Congress in 1925 to encourage the use of arbitration to resolve conflicts. Additionally, the Federal Arbitration Act requires that when parties have agreed to arbitrate they must do so in lieu of filing court actions. Nonetheless, as previously mentioned, California courts steadfastly hold that the Federal Arbitration Act does not preempt “generally applicable contract defenses, such as fraud, duress, or unconscionability (Conception)”.
What effect do claims based on specific federal or state laws have on arbitration provisions in employment
(Cite) Notably, California is absent from that list. Additionally, California case law is wrought with courts opposing the enforceability of arbitration agreements in certain …show more content…
Are there times when an arbitration clause might be invalid or unenforceable against an employee?
Generally, the courts favor arbitration and arbitration agreements are enforced. The Federal Arbitration Act was passed by Congress in 1925 to encourage the use of arbitration to resolve conflicts. Additionally, the Federal Arbitration Act requires that when parties have agreed to arbitrate they must do so in lieu of filing court actions. Nonetheless, as previously mentioned, California courts steadfastly hold that the Federal Arbitration Act does not preempt “generally applicable contract defenses, such as fraud, duress, or unconscionability (Conception)”.
What effect do claims based on specific federal or state laws have on arbitration provisions in employment