The world has substantially changed and we now advise that every Southern California and San Diego employer should have an arbitration agreement. The Supreme Court of the United States recently ruled in Chamber of Commerce v Bonta that the Federal Arbitration Act or FAA preempts AB51 and all of California’s recent laws and attempts to prevent employers from using arbitration agreements. The decision renders California’s laws “unenforceable.”
What This Simply Means is Every San Diego Employer Should Have an Arbitration Agreement
What this simply means is every Southern California and San Diego employer should have an arbitration agreement. Our founding partner, Dan Watkins, recently described plaintiff’s attorneys as “hungry wolves who are looking for their next meal” in our recent podcast Episode 29 – Recent Big News in Arbitration. Plaintiffs attorneys heavily advertise for disgruntled current and former employees looking for the potential of a class action or Private Attorneys General Act or PAGA lawsuit.
Employers need to immediately understand two things: every San Diego employer should have an arbitration agreement and the first thing you should do the moment you suspect a situation is brewing or you receive correspondence or service of a lawsuit or PAGA Action is to call the Watkins Firm immediately for a substantive, Free consultation at 858-535-1511. What you don’t know is there is a secret clock ticking but if you take the right actions now, in the first few weeks, we can help you to remediate the damages or eliminate your legal and financial exposure altogether.
What Does an Arbitration Agreement Do?
An arbitration agreement puts out fires before they ever start. If something comes out the arbitration agreement allows the employer to resolve single disputes quickly and in a cost-efficient manner. Class action waivers allow an employer to avoid exposure to class action lawsuits altogether. In cases of genuine dispute, arbitration is faster and less expensive than almost any jury trial process. Binding arbitration means the finding of the arbitrator cannot be appealed (except in very rare instances of collusion or fraud). Arbitration provides the protections of privacy keeping news, business and financial information out of the public record.
Are you a Southern California employer? Every San Diego employer should have an arbitration agreement and class action waiver. The Watkins Firm has more than 40 years of experience advising and protecting employers. We can help you to develop and implement this important legal and financial protective strategy. We invite you to review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
