Arbitration Clauses in California Employment Contracts

Arbitration clauses in employment contracts have been something of a moving target over the past few years. However, the Court of Appeals recently in Sanchez v CarMaz Auto SuperStores California, LLC (2014 DJDAR 2654) gave further guidance, allowing an employment dispute to proceed to arbitration where the court found that the specific arbitration clause in question was neither unilateral nor oppressive. Moreover, the court found that the mere fact that the arbitration clause was a condition of employment did not make it unconscionable. At George & Shields, we routinely advise clients from both the employer and employee side on employment contracts. If you have questions about your employment contract, contact us.