News & Analysis as of

Employment Contract Arbitration Agreements Contract Terms

Blake, Cassels & Graydon LLP

Five Employer Wins and Counting: Is the Tide Turning?

In a shift from the prevailing trend of employee-friendly case law regarding the interpretation of employment and compensation agreements, Canadian courts have recently issued a series of rulings in favour of employers. ...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

California Supreme Court Rules FAA Does Not Preempt Arbitration Fee Deadline, Rejects Strict Penalties

On August 11, 2025, the Supreme Court of California ruled that the Federal Arbitration Act (FAA) does not preempt a state statute requiring employers to timely pay arbitration fees or forfeit the right to arbitration. The...more

Fenwick & West LLP

CA Supreme Court: Federal Arbitration Act Does Not Preempt State Law on Timely Arbitration Fee Payment

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The California Supreme Court recently held in Hohenshelt v. Superior Court that the Federal Arbitration Act (FAA) does not preempt a California law that penalizes businesses that have consumer and employee arbitration...more

Fox Rothschild LLP

The Million Dollar ChatGPT Mistake

Fox Rothschild LLP on

I’m still haunted by the call that started my morning early Thursday. A new client needed help with the termination of an executive, immediately. Now, my spidey senses perk up whenever a client calls with a same-day...more

Fox Rothschild LLP

Gambling on Guarantees

Fox Rothschild LLP on

The current dispute between the Las Vegas Raiders (“Raiders”) and Christian Wilkins (“Wilkins”) is more than a football headline; it underscores how fragile the concept of “guaranteed” money can be—not only in sports but also...more

Bennett Jones LLP

BC Court of Appeal Upholds Arbitration and Foreign Law Clauses in Employee Incentive Plan

Bennett Jones LLP on

In Aspen Technology, Inc. v. Wiederhold, 2025 BCCA 261 (Wiederhold), the British Columbia Court of Appeal enforced an arbitration/forum selection clause in an employee incentive plan, overturning a lower court decision and...more

Ervin Cohen & Jessup LLP

Surprise! Misleading Statements and Time Pressure May Render an Employer’s Arbitration Agreement Unenforceable

Employers have long been scrutinized for perceived unequal bargaining power when it comes to enforcement of company-drafted arbitration agreements. Indeed, both the California legislature and the courts have aimed to protect...more

Dickinson Wright

Start the Clock—The Case for Including Contractual Limitations Periods in Employment Agreements.

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Contractual limitations periods provide parties on both sides of an agreement certainty regarding the filing of a potential action. But many employers do not know that they may include such contractual limitations periods in...more

Ervin Cohen & Jessup LLP

Contemporaneous Onboarding Documents May Invalidate An Employer’s “Squeaky Clean” Arbitration Agreement

Cross Country Healthcare, Inc., a healthcare staffing company, believed that it had a “squeaky clean” Arbitration Agreement with its employees. ...more

CDF Labor Law LLP

Unconscionable Employment Terms In Onboarding Documents Can Void Arbitration Agreements

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On June 13, 2025, a California Court of Appeal struck down an arbitration agreement because of unconscionable terms entered by the parties in a separate employment agreement, governing different dispute resolution fora and...more

Ervin Cohen & Jessup LLP

The Importance of Having an Up-To-Date Employment Arbitration Agreement

Until the United States Supreme Court’s decision in Viking River Cruises v. Moriana in 2022, California law had established that Private Attorneys General Act (“PAGA”) claims could not be subject to binding arbitration....more

Haynsworth Sinkler Boyd, P.A.

Beyond Silence: South Carolina Supreme Court Ruling Clarifies Acceptance in Employment Arbitration Agreements

In Lampo v. Amedisys Holding, LLC and Leisa Victoria Neasbitt, the South Carolina Supreme Court establishes important legal precedent regarding contract formation for arbitration agreements between employers and employees....more

Sheppard Mullin Richter & Hampton LLP

Plaintiffs, Not Defendants, Must Initiate Arbitration

Arzate v. Ace American Insurance Company, — Cal. Rptr. 3d — (2025) began as a familiar case: plaintiffs signed arbitration agreements (“Agreement”) with their employer that contained a class action waiver. But when a dispute...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Second Circuit Renders Important Decision on Vested Retiree Benefits

In a significant ruling on February 5, 2025, the U.S. Court of Appeals for the Second Circuit addressed the enforceability of an arbitration provision in an expired collective bargaining agreement (CBA) in the case of Xerox...more

Littler

The Sixth Circuit Rules on Arbitration Clause Enforcement

Littler on

The U.S. Court of Appeals for the Sixth Circuit has ruled that an arbitration provision in a plaintiff’s employment contract is binding and enforceable, even if the employer did not explain the provision or recommend the...more

Proskauer - California Employment Law

Does an Arbitration Agreement Require the Employer’s Signature?  Read the Fine Print

The California Court of Appeal recently reminded employers in an unpublished (but nonetheless chastening) opinion of the importance of carefully drafting arbitration agreements. In Pich v. LaserAway, LLC et al, the court...more

K&L Gates LLP

California Court of Appeal Ends Headless PAGA Actions in Leeper v. Shipt

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The California Court of Appeal, Second Appellate District, in Leeper v. Shipt, Inc., No. B339670, 2024 WL 5251619 (Cal. Ct. App. Dec. 30, 2024) (Leeper) issued a significant decision benefiting employers seeking to enforce...more

CDF Labor Law LLP

Good News for Employers: California Enforces Arbitration Agreement In Favor of Non-Signatory Related Entities

CDF Labor Law LLP on

Frequently, employment arbitration agreements are written with the intent to apply to future disputes between an employee, the employer and the employer’s parent and sister companies....more

Seyfarth Shaw LLP

Arbitration Agreement Enforceable By Non-Signatory Alleged Joint-Employers

Seyfarth Shaw LLP on

Employees who sign an arbitration agreement with one company cannot avoid arbitration with related defendant-companies by arguing they were not parties to the agreement. The California Court of Appeal held that claims against...more

Lewitt Hackman

Beyond the Contract: Non-Signatories to an Arbitration Agreement Can Compel Arbitration

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Departing from the ruling in Soltero v. Precise Distribution earlier this year, the California Court of Appeal in the Second District in Gonzalez v. Nowhere Beverly Hills LLC, created a split of authority regarding an alleged...more

Kilpatrick

California Supreme Court outlines severance standards for unconscionable contract provisions in arbitration case

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Issues surrounding unconscionability and severance are commonplace in motions to compel arbitration, especially in California. Under California Civil Code section 1670.5, a court has three options when presented with an...more

Ervin Cohen & Jessup LLP

Severing Unconscionable Terms in Employment Arbitration Agreements

In August 2000, the California Supreme Court handed down a landmark ruling that changed the face of employment arbitration agreements going forward. That case, known as Armendariz v. Foundation Health Psychcare Services,...more

Ervin Cohen & Jessup LLP

Overbroad Employment Arbitration Agreements Will Not Be Enforced in California

Arbitration agreements, at their core, are contracts. As with any contract, there must be “mutuality” or, more colloquially, a “meeting of the minds” on what the contract is intended to encompass. For this reason, employment...more

CDF Labor Law LLP

CA Supreme Court: No Three-Strikes Rule For Enforcement of Arbitration Agreements

CDF Labor Law LLP on

In a recent decision, the California Supreme Court held that courts cannot refuse to enforce arbitration agreements simply by finding that three or more provisions are unconscionable. Rather, courts must use a three-prong...more

Carlton Fields

New Jersey Supreme Court Reinstates Arbitrator’s Decision Demoting School Official

Carlton Fields on

Under New Jersey’s Tenure Employees Hearing Law, when a school district files tenure charges against an employee, the state commissioner of education must refer the case to arbitration if he or she determines that the charges...more

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