A Cautionary Tale on Arbitration Agreements

HR Daily Advisor

Elizabeth J. Boca, an Associate in the Employment, Labor & Workforce Management practice, in the firm’s San Francisco office, authored an article in HR Daily Advisor, titled “A Cautionary Tale on Arbitration Agreements.”

Following is an excerpt:

The California Court of Appeal recently denied an employer’s appeal of a lower court’s denial of its motion to compel arbitration of a lawsuit filed by a former employee that included claims under the Private Attorneys General Act (PAGA).

The court of appeal held that the arbitration agreement contained a PAGA waiver that was impermissible. The appellate court invalidated the entire agreement for several reasons, including the fact that the agreement stated the waiver was a material term and the entire agreement would be void if the waiver was found unenforceable.