Q: is it legal to be asked to sign a "voluntary" arbitration agreement and then be told its contingent of your employment
My dad received an arbitration agreement that he is "voluntarily,"/ required to sign. His employer said if he doesn't he may lose his employment. My biggest concern other than this seeming unfair is that it states both parties would have to cover their own costs. He was told to submit it by 7/26/22, should he sign?
A:
In California, an arbitration clause that is presented as a condition of further employment is considered to be unenforceable. Furthermore, depending on the nature of the dispute, an arbitration clause that requires the employee to pay half the cost of the arbitrator is also unenforceable.
Good luck to you and your dad.
A: I agree with Mr. Pedersen's excellent answer. I would add that the Ninth Circuit Court of Appeals recently upheld AB 51's prohibition on requiring mandatory arbitrations as a condition of employment, but if the employee signs the arbitration agreement then it is enforceable under the Federal Arbitration Act and also a misdemeanor.
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