Arbitration agreements are in the news nationally and especially here in California but how do recent developments change business scenarios for California and San Diego area employers?
The Problem and the Resolution
The problem over the past several years for many Southern California and San Diego employers was a sharp increase in plaintiff’s lawsuits surrounding wage and hour issues as well as Private Attorneys General Act (PAGA) actions.
California has used AB-51 and other bills which actually became law in an attempt to make it virtually impossible if not illegal for an employer to ask for or require employees to sign an arbitration agreement as a condition of employment. As a result, many cases which should have been straightforward (and relatively inexpensive) disputes became potentially huge lawsuits expanding into other cases and class actions involving other current and former employees.
The resolution for area employers lies in an important decisions by the Supreme Court of the United States (SCOTUS) in the case of “Chamber of Commerce v. Bonta.” This important decision found that California’s laws were preempted by the Federal Arbitration Act and basically cannot be enforced.
What Does This Mean for San Diego and Southern California Employers?
What does the SCOTUS “Chamber of Commerce v. Bonta” decision mean for San Diego and Southern California employers? Arbitration agreements are in the news and area employers are no longer barred from requiring arbitration agreements as a condition of employment. The best protection for any California employer is to immediately review the existing employee handbook as well as policies and procedures and identify strategies to strengthen protections against legal and financial exposure to disputes and lawsuits.
Arbitration Agreements Are in the News Requiring Action by San Diego Employers
Arbitration agreements are in the news again providing good news and resulting required action by San Diego employers. The Watkins Firm has represented, advised and defended Southern California and San Diego employers for more than 40 years. We will work with you to review existing employment-related documentation, update existing handbooks as well as policies and procedures and implement new arbitration agreements to reduce exposure to legally unnecessary and financially perilous disputes and lawsuits.
We invite you to review our Podcast Episode 29 – Big News in Arbitration, the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
