While you should consult with an attorney about specific provisions, here are some frequently asked questions about arbitration agreements. This article will explore the use of arbitration agreements in California employment law cases and the implications for both employers and employees.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. Under a recent California law, employers can no longer require employees or job applicants to sign an arbitration agreement. An arbitration agreement is a written contract in which two or more parties agree to utilize a neutral third party- the arbitrator- to resolve a dispute. Employment agreements often include an arbitration clause in which an employer and an employee agree to resolve their disputes before a private arbitrator. Almost every employment agreement contains an arbitration clause requiring the employee to submit to arbitration if there is a dispute. A recent law change means that arbitration clauses in employment agreements are no longer enforceable in certain situations. Many employers ask employees to sign arbitration agreements, in which they give up their right to sue in court over jobrelated issues.