Arbitration agreements defend a San Diego employer from a variety of employee-related disputes and lawsuits. Most employers (even those with only a few employees) gain a substantial benefit from the development and implementation of an arbitration agreement: employee disputes are resolved in a much faster time frame and at a fraction of the cost of the lawsuits of recent years. The arbitration agreement itself serves as a shield to prevent many plaintiff’s lawsuits and California Private Attorneys General Act or PAGA lawsuits.
What is an Arbitration Agreement and What Do They Do for Me as an Employer
Arbitration agreements defend a San Diego employer by establishing enforceable limits on the employee-related dispute resolution process. A well-crafted arbitration agreement is an enforceable contract that requires the parties in any dispute between you, the employer, and any employee to be managed individually and through arbitration instead of a lawsuit resulting in a trial before a Judge and/or jury.
Arbitration is a private and confidential legal environment which keeps your business and financial information out of the public record. Arbitration is much faster than the process of a lawsuit through a trial, usually a matter of weeks instead of months or a year or more. Arbitration agreements usually establish that the parties are to work together to select a knowledgeable, experienced and expert arbitrator.
Arbitration is much less expensive than litigation in a civil court, and much less expensive than a class action or California Private Attorneys General Act lawsuit. The timeframes involved in resolution require much less cost including the legal fees associated with disputes prior to the recent changes in federal and state law.
SCOTUS Decision in Chamber of Commerce v. Bonta
A recent decision in the 9th U.S. Circuit Court of Appeals in Chamber of Commerce v. Bonta briefly invalidated California’s AB 51 and the Supreme Court of the United States ruled in June that the FAA (Federal Arbitration Act) outweighs and supersedes any state law (including California’s AB 51). These were important victories for California employers who are finally free to implement strategies associated with arbitration agreements as a way to eliminate superfluous lawsuits and class actions.
Arbitration Agreements Defend a San Diego Employer From Frivolous Lawsuits and PAGA Actions
The past few months have brought tremendous opportunity for San Diego and Southern California employers to implement arbitration agreements. Arbitration agreements defend a San Diego employer from frivolous lawsuits and PAGA actions and require employee-related disputes to be managed individually, through arbitration.
This substantially reduces the risks California employers have face for many years. It is time to protect your interests as an employer, reduce the risks of plaintiff’s lawsuits and PAGA actions and implement a stronger defense against employee lawsuits. Your Watkins Firm employer defense attorney has more than 40 years of experience in San Diego and Southern California. Ask how we can work with you to develop and implement a policy which will substantially reduce your exposures and risks while saving you substantial sums of money.
We invite you to review our Podcast Episode 29 – Recent Big News in Arbitration as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
