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Employment Contract › Contract Terms › Unconscionable Contracts

Husch Blackwell LLP

Michigan Supreme Court Upends Shortened Limitations Periods in Employment Contracts

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Imagine accepting a new job, signing a stack of documents, and working for years—only to learn after being fired that hidden fine print gave you just months, not years, to sue for wrongful termination. Sound fair? The...more

Miller Canfield

Michigan Supreme Court - Contractually Shortened Period of Limitations in Employment Agreements May Need Another Look

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On July 31, 2025, in Tamika Rayford v American House Roseville, LLC d/b/a American House East I and American House, the Michigan Supreme Court held that boilerplate employment agreements that shorten the limitations period to...more

Ervin Cohen & Jessup LLP

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

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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

CDF Labor Law LLP on

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

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

New York’s Proposed Employment Contract Reforms: What Employers Need to Know

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If two bills recently introduced in the New York State Legislature become law, employers across the state could face new restrictions on including certain common provisions in their employment-related agreements....more

Kilpatrick

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

Kilpatrick on

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

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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

Ervin Cohen & Jessup LLP on

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

Lewitt Hackman

Can Your Company’s Arbitration Agreement Survive an Unconscionability Inquiry?

Lewitt Hackman on

Concluding that TWC Dealer Group, Inc.’s arbitration agreements were both procedurally and substantively unconscionable, California’s First Appellate District’s recent decision highlights certain contractual terms and...more

FordHarrison

Lessons in Drafting and Implementing an Enforceable Mandatory Arbitration Agreement

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Recently, the California Supreme Court invalidated a mandatory arbitration agreement in OTO, LLC v. Kho (August 29, 2019) finding the agreement was both procedurally and substantively unconscionable. The case involved...more

Carlton Fields

West Virginia Supreme Court Reverses, Finds “Delegation Clause” in Employment Arbitration Agreement Neither Ambiguous nor...

Carlton Fields on

Petitioners, two Rent-A-Center entities, moved to compel arbitration of a lawsuit by Anita Ellis alleging that Rent-A-Center unlawfully terminated her employment for seeking workers’ compensation benefits....more

Payne & Fears

Key California Employment Law Cases: March 2017

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This month’s key California employment law cases involve arbitration and PAGA issues. Arbitration - Farrar v. Direct Commerce, Inc., 9 Cal. App. 5th 1257, 215 Cal. Rptr. 3d 785 (2017) - Summary: Arbitration...more

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