Drafting an enforceable arbitration agreement in California demands a nuanced understanding of both statespecific and federal laws. 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. When it comes to arbitration, business agreements usually require binding arbitration. However, a business contract can also allow for non-binding arbitration. Free Consultation - Call (925) 463-2575 - Stephen M. Fuerch help companies with business issues including Corporate and Business Litigation cases. Arbitration or mediation: A contract may say you must go to arbitration or mediation before you can sue or be sued. This article will explore the use of arbitration agreements in California employment law cases and the implications for both employers and employees. Signing an arbitration agreement may put the consumer at risk of having a disadvantage during arbitration. Many companies have implemented alternative dispute resolution programs, many of which include employment arbitration agreements.