Does the public policy exception apply to an arbitration finding that there is no cause for termination for an employee who has been accused of sexual harassment?

California, United States of America


The following excerpt is from SingerLewak LLP v. Gantman, 193 Cal.Rptr.3d 672, 241 Cal.App.4th 610 (Cal. App. 2015):

Likewise, in City of Richmond v. Service Employees Internat. Union Local 1021 (2010) 189 Cal.App.4th 663, 118 Cal.Rptr.3d 315, the court rejected the public policy exception as a basis to review an arbitration award. The underlying case involved an employee who was terminated after being accused of sexual harassment and dishonesty. The employee challenged the termination in arbitration. The arbitrator concluded the sexual harassment claims were time-barred and the evidence did not support the dishonesty charges. The arbitrator accordingly found no cause for termination and ordered the employee reinstated. (Id. at pp. 667-668, 118 Cal.Rptr.3d 315.) On appeal, the court concluded the arbitration award did not violate public policy. Although there is a strong public policy against sexual harassment in the workplace, the court concluded that policy did not preclude an arbitrator from ordering an accused harasser reinstated where the accusations were time-barred. (Id. at pp. 671-672, 118 Cal.Rptr.3d 315.)

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