An important significant recent US Supreme Court decision has changed the game for  San Diego and Southern California employers.  As employers, we have gained a valuable protection: arbitration agreements in an employee contract can prevent litigation and PAGA actions and limit your exposure as an employer. What has changed and what do you need to know going forward?

Supreme Court of the United States (SCOTUS) “Chamber of Commerce v. Bonta” Decision

The SCOTUS decision in “Chamber of Commerce v. Bonta” established important protections for California employers.  The Court found that the Federal Arbitration Act supersedes and preempts California’s AB 51 which was designed to go around SCOTUS decisions in other legal cases and basically prevent an employer from requiring an arbitration agreement as a condition of employment.

The legal result of “Chamber of Commerce v. Bonta” is San Diego and Southern California employers are no longer going to be held hostage by plaintiff’s attorneys and Private Attorneys General Act (PAGA) actions if they take immediate action to implement arbitration agreements between the company and its employees.

Why Do You Need the Watkins Firm to Help With Your Employment Agreement and Arbitration Agreement?

Now that arbitration agreements in an employee contract can prevent litigation and PAGA actions it is time to call the Watkins Firm to discuss how to implement arbitration agreements while updating or implementing effective employment agreements.

An effective employment agreement should protect the company’s trade secret and proprietary information, and do everything possible to prevent disputes and litigation.  Employment agreements should also establish clear expectations and a foundation for successful relationship between your company and your new employee.

In addition, San Diego and Southern California employers are required to provide legal disclosures and employment-related information to all employees.  The employment agreement ensures not only that all required actions are taken, but that the signature of the employee verifies and protects completion of this important element of employment.

Ensuring Effective Arbitration Agreements in an Employee Contract Can Prevent Litigation and PAGA Actions

Ensuring effective arbitration agreements in an employee contract can prevent litigation and PAGA actions.  There is nothing that is more expensive, ultimately, to a company than an internal dispute with an employee.  The episode distracts ownership from the principal focus of running the business and impacts the working environment and morale of all employees who are affected by the dispute.

The Watkins Firm has provided effective employment agreements to Southern California employers San Diego businesses and healthcare companies for more than four decades.  We help to structure your customized agreements in order to ensure that:

• Your employees have a clear understanding of the expectations associated with their employment
• The employment contract and all associated policies and documentations are in full compliance with local, state and federal laws
• Your company’s trade secrets, supplier and customer lists, and all competitive information are clearly identified and protected against misappropriation or future competition
• Your company is protected against disputes and litigation through clear evaluation and escalation procedures and policies that quickly identify issues and help to facilitate cost-effective and timely resolution

Effective employee contracts prevent disputes and PAGA actions by clearly establishing expectations for conduct, performance and protection of the company.  PAGA actions have become much more common in recent years as employees are actually incentivized to identify and pursue employment law violations on behalf of the State of California.  A carefully crafted arbitration agreement prevents these lawsuits before they ever begin by requiring employees to take any dispute to arbitration for resolution.

Leave the plaintiffs attorneys and PAGA risks out of your future as an employer!

We invite you to Listen to our Podcast Episode 29 – Big News in Arbitration, review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.

Learn how effective arbitration agreements in an employee contracts can prevent disputes and PAGA actions and how the experienced, proven employer defense team at the Watkins Firm can help to evaluate existing agreements or develop the types of contracts that protect your company while allowing your employees to grow and prosper.