As of February 15, 2023, California employers can require employees to agree to arbitrate most employment disputes as a condition of employment after the Ninth Circuit Court of Appeals, in Chamber of Commerce of the U.S., et al.
No, you cannot be forced to sign an arbitration agreement, but if you refuse, the company would be legally entitled to terminate you. It is your decision. Good luck to you.
The court said the state law is preempted by the Federal Arbitration Act (FAA). As a result, Assembly Bill 51 no longer stands as an obstacle to employers that wish to require arbitration agreements as a condition of employment in California, so long as the FAA applies and governs the agreement.
If neither party appeals the decision, it will be binding, like an order by a judge. However, a party unhappy with the arbitrator's decision can request a new trial before a judge.
Without a valid arbitration agreement, no arbitration can take place or award can be rendered. In other words, a valid arbitration agreement is the cornerstone of any arbitration proceedings. Townsend, J.M., Drafting Arbitration Clauses: Avoiding the 7 Deadly Sins, Dispute Resolution Journal, 2003, p. 1.
In some instances, you may be able to sue if you signed a valid arbitration agreement. While courts generally favor arbitration agreements, they will allow you to file a lawsuit if either you didn't understand your rights or your claims fall outside the arbitration provision's scope.
To enforce an arbitral award under the CAA, a petition to confirm must be filed no earlier than ten days after, but not later than four years from, the date of service of a signed copy of the award on the petitioner (Cal. Civ. Proc. Code §§ 1288, 1288.4).
Should you sign an arbitration agreement? If you agree to engage in a possible future arbitration voluntarily, mutually determine the ground rules of arbitration and agree to choose an impartial arbitrator together, you are likely to find arbitration to be not only inexpensive and fast but also fair.
Arbitration. Less formal than a trial, parties present evidence and arguments to an arbitrator who decides the outcome. In "binding" arbitration, the arbitrator's decision is final; there is no right to trial. In "nonbinding" arbitration, any party can request a trial after the arbitrator's decision.
Arbitration agreements are subject to certain rules in order to have enforceability under California and federal law. If an arbitration agreement fails to meet these requirements, it can be held unenforceable.