Can an employer compel an employee to submit to binding arbitration?

California, United States of America


The following excerpt is from Arreguin v. Winery, A145553 (Cal. App. 2018):

Roman v. Superior Court (2009) 172 Cal.App.4th 1462 construed similar language, reaching the same conclusion. The arbitration clause in Roman had the employee undertake, essentially, this: " 'I agree, in the event I am hired by the company, that all disputes and claims that might arise out of my employment with the company will be submitted to binding arbitration.' " (Id. at p. 1466.) No mirror-image language specified what the employer was agreeing to, but the court nonetheless found that the agreement imposed bilateral obligations. "[T]he use of the 'I agree' language in an arbitration clause that expressly covers 'all disputes' creates a mutual agreement to arbitrate all claims arising out of the applicant's employment." (Ibid.) Because the employee's assent created an obligation that was mutual, the agreement was not substantively unconscionable. (Ibid.)

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