Drafting an enforceable arbitration agreement in California demands a nuanced understanding of both statespecific and federal laws. Arbitration Requirements in Californiaāā Under California law, an employer can require its employees to agree to arbitration as a term of employment.In 2019, California passed a law that would prohibit employers from requiring applicants or existing employees to sign an arbitration agreement. California law permits employers not to hire you if you refuse to sign an arbitration agreement. An arbitration agreement is where you waive your right to sue. As of February 15, 2023, California employers can require employees to agree to arbitrate most employment disputes as a condition of employment. A recent court decision offers employers guidance on potential concerns that may arise in drafting and presenting employee arbitration agreements. Employers can and should continue to require arbitration agreements as a condition of employment in California to avoid hefty litigation bills. The California Supreme Court continues to support binding arbitration of employment disputes whether based in contract or in tort. A California appellate court refused to enforce an employment arbitration agreement after finding three common provisions were unconscionable.