Reversal of Recent Trends Disfavoring Arbitration Agreements — Dec 2010





In a reversal of recent trends disfavoring arbitration agreements in the employment law context, the Federal Court in California recently upheld an arbitration provision which included a class-action waiver. Borrero v. The Travelers Indem. Co., No. CIV S-10-322 KJM (E.D. Cal. Oct. 14, 2010).

Even more surprising was the fact that the employee hadn't even signed the actual arbitration agreement (though she had signed multiple documents throughout her employment acknowledging the force and effect of the arbitration agreement). The employee, Audrey Borrero, alleged failure to timely pay wages and overtime, as well as meal and rest period violations.

The good news for employers is that, while California Courts still greatly disfavor provisions requiring arbitration in the adjudication of employee claims, this does indicate a willingness to enforce properly drafted and narrowly tailored arbitration agreements.

For more information about this case or to discuss how best to draft and implement an employee arbitration of disputes agreement for your business. Please contact our Employment Law Department at (213) 480-1900.


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