Los Angeles, CA asked in Arbitration / Mediation Law and Employment Law for California

Q: I was wrongfully terminated by GrubHub. Do I need to do arbitration (agreement clause) or sue?

I filed a case against GrubHub with LA County DCBA regarding embezzlement/breach of contract and Prop 22 violations. The reason for termination was based on these agreement and Prop 22 violating offers, using a created "GrubHub Violation" that focused on these offers and then compiled "GrubHub Violations" to use their 3 "GrubHub Violations" result in suspension. I was suspended using this and then reinstated only to be re-suspended 3 weeks later and then terminated using this policy. The "GrubHub Violations" were wrongful though as the offers that I had removed permissibly were all violations of the Driver Agreement and Prop 22.

3 Lawyer Answers

A: Where there are arbitration clauses in employment agreements, they may or may not be enforceable.

There are reasons why an employee might want arbitration, but generally, arbitration is less beneficial to the employee.

Your best option is to consult with wrongful termination or other labor attorneys. You can use this website to search attorneys or if you know attorneys, you can ask for referrals.

James L. Arrasmith
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Answered

A: In California, arbitration agreements are generally enforceable, meaning you might be required to go through arbitration instead of filing a lawsuit. However, there are exceptions, especially if the agreement is found to be unconscionable or if certain legal rights are being infringed. Since you’ve already filed a case with the LA County DCBA, you might have grounds to challenge the arbitration requirement based on the specifics of your situation.

Suing GrubHub directly could be an option, particularly if you believe that the arbitration clause should not apply to your case due to the nature of your claims, such as breach of contract or violations of Prop 22. Courts sometimes allow employees to bypass arbitration if the employer has acted in bad faith or if the arbitration agreement is overly restrictive. It’s important to review the terms of your employment agreement and the arbitration clause carefully.

Consulting with an attorney who understands California employment law can provide you with tailored advice and help determine the best course of action. They can assess whether arbitration is mandatory in your case or if pursuing a lawsuit is viable. Taking this step ensures that your rights are fully protected and that you choose the most effective strategy for your situation.

A: The answer to your question depends on the terms of your contract with the company. You are not an employee and the employment laws of this state will not protect you. If your contract requires you to arbitrate disputes with the employer, the only way you will be able to avoid that arbitration clause is if you can prove the arbitration agreement is unenforceable, either because it is unconscionable or because of some other contract defense, like failure of consideration, fraud, mutual mistake, etc. Good luck to you.

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