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Home » Blog » Arbitration Agreements – Can Your Employer Make You Waive Your Rights?

Arbitration Agreements – Can Your Employer Make You Waive Your Rights?

Posted on August 16, 2018 | By Omid Nosrati | Class Action,Firm News,Wage & Hour Laws

Arbitration Agreements Are Generally Enforceable

An issue that sometimes comes up at work is an arbitration agreement.   What happens when an employer requires employees to sign an arbitration agreement? In general, if an arbitration agreement meets certain legal requirements, employers can require them and they can be enforceable. In those cases, any claim that comes up needs to go through the arbitration process instead of court. However, there are certain limitations.

Arbitration Agreements Are Not Enforceable When They Require Certain Waiver of Rights

In the recent case of Carlos Juarez v. Wash Depot Holdings, Inc., the California Court of Appeal concluded that when an employment agreement requires employees to waive their rights to bring a representative action under the Private Attorney General Act (“PAGA”), it is against the public policy of California and is not enforceable.

Being Able to Opt Out

Even if the agreement gives the employee the opportunity to opt out, it doesn’t necessarily make the agreement enforceable. In the Juarez case, the Court of Appeal concluded that simply allowing the employee to opt out without more evidence of the employee’s knowledge and understanding of what he was giving up is not enough to make the rest of the agreement enforceable.  To read the court’s full opinion, click here:

If you are not sure about signing an arbitration agreement or if you’ve signed one and aren’t sure about your rights, speaking to an experienced employment law attorney can help.

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About the Author
Omid Nosrati

Mr. Nosrati been selected as one of the Top 100 Labor and Employment lawyers in the State of California for 2016, 2017, and 2018 by The American Society of Legal Advocates (ASLA). He has a “Superb” (10 out of 10) rating on Avvo and a 4.9 out of 5.0 Peer Rating from other lawyers on Martindale Hubbell. Omid Nosrati is also a member of the respected California Employment Lawyers Association, Los Angeles County Bar Association, and Santa Monica Bar Association. He is a firm believer in education, loves to read about technology trends in the legal field and leverages his firm’s technological strengths to benefit each of his firm’s clients.