An Arbitration clause is a contractual provision that mandates arbitration of disputes about the rights, duties, and liabilities of the contracting parties. This provision results in the avoidance of litigation.
California Motion to Compel Arbitration - No Waiver of Right
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FAQ
Even if you don't currently have a dispute with the company, it is a good idea to opt out of the forced arbitration clause to preserve your options. You can always agree later to use an arbitrator to resolve any dispute. Moreover, if you have opted out, you will have more negotiating power if there is a problem.
The party seeking to compel arbitration bears the burden of proving by a preponderance of the evidence an agreement to arbitrate a dispute exists. (Pinnacle, supra, 55 Cal. 4th at p. 236; Rosenthal v.
While you technically have the choice not to sign an arbitration agreement that appears to be skewed more to your employer's benefit, the employer can simply rescind its offer of employment if you refuse to sign.
[1] In the context of arbitration, waiver occurs when a party consciously and intentionally gives up its right to arbitrate a particular dispute, thereby choosing litigation as the preferred method of dispute resolution.
If you're a prospective plaintiff, however, the most important thing for you to know is that signing a mandatory arbitration clause means you waive your right to file your claim in court to be tried by a judge and/or jury.
Fortunately, the California Labor Code provides protections for California employees. Without the protection of the California Labor Code, if you refuse to sign a mandatory arbitration waiver, your employer could: Fire you. Employers might agree to keep you employed if you provide valuable services.
In forced arbitration, a company requires a consumer or employee to submit any dispute that may arise to binding arbitration as a condition of employment or buying a product or service. The employee or consumer is required to waive their right to sue, to participate in a class action lawsuit, or to appeal.
If the court determines that a written agreement to arbitrate a controversy exists, an order to arbitrate that controversy may not be refused on the ground that the petitioner's contentions lack substantive merit.