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Employment Contract Unconscionable Contracts Employment Litigation

Warner Norcross + Judd

Michigan Supreme Court Reinstates “Reasonableness” Test: New Rules for Shortened Limitations Periods in Employment Contracts

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The Michigan Supreme Court recently held in Rayford v. American House Roseville I LLC that courts must review for reasonableness provisions in employment contracts that limit the amount of time within which an employee may...more

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

Michigan Supreme Court Says Time Limits on Employment Claims Must Be Reasonable

On July 31, 2025, in Rayford v. American House Roseville I, LLC, the Michigan Supreme Court ruled that contractual time limitations for employment lawsuits must pass a reasonableness test....more

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

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

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

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

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

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

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

California Appeals Court Finds Employer’s Arbitration Agreement With Cost-Sharing and Out-of-State Law Provisions Unconscionable

In a recent ruling, a California appeals court found an arbitration agreement with an eyewear store employee that was presented on a take-it-or-leave-it basis required an arbitrator to apply the laws of another state,...more

Carlton Fields

Eleventh Circuit Affirms Order Compelling Arbitration of Discrimination Claims, Rejects Argument That Arbitration Agreement Was...

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In Payne v. Savannah College of Art and Design Inc., the Eleventh Circuit Court of Appeals affirmed a district court order denying a motion to compel arbitration of plaintiff Isaac Payne’s discrimination-based claims. The...more

Carlton Fields

Eleventh Circuit Enforces Employee Arbitration Agreement, Concluding That Agreement Was Not Unconscionable

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In Lambert v. Signature Healthcare LLC, the Eleventh Circuit Court of Appeals reversed the district court’s denial of the defendants-appellants’ motion to dismiss and to compel arbitration under the FAA, holding that the...more

Carlton Fields

SDNY Compels Arbitration Based on Severability Doctrine, Finds Fee-Shifting Clause Not Unconscionable

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The Southern District of New York granted a motion to compel arbitration of an employment dispute between the petitioners and the respondent. The petitioners also filed a motion to dismiss or stay a concurrent proceeding that...more

Littler

Easily “Shocked”? At Least for Wage Claims, California Supreme Court Lowers Standard for Unconscionability in Arbitration...

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In OTO, L.L.C. v. Kho, the California Supreme Court refused to enforce an employee’s arbitration agreement on the basis that it was unconscionable.  Unconscionability has long been a common-law defense to contract...more

Seyfarth Shaw LLP

California Invalidates Wage Arbitration Agreement, Inviting U.S. Supreme Court Review

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Seyfarth Synopsis: The California Supreme Court invalidated an employment arbitration agreement on August 29, 2019. At issue in OTO, LLC v. Kho was an agreement to arbitrate employment claims, including wage claims. Under the...more

Carlton Fields

Alabama District Court Enforces Arbitration Clause Related to Disability Policy Over Unconscionability Claim

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The U.S. District Court for the Northern District of Alabama has compelled arbitration despite a former employee’s claim that the arbitration clause in the policy at issue was unconscionable under the circumstances related to...more

Carlton Fields

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

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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

Hogan Lovells

California Appellate Courts Diverge on Arbitration Agreements

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Two California Courts of Appeal came to two different conclusions on motions to compel arbitration on the same day last week (April 10), again demonstrating the care that must be taken in drafting and presenting arbitration...more

Carlton Fields

Ninth Circuit Finds Arbitration Agreement In Employment Application Was Unconscionable

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In this case, Ritarose Capili, a sales associate, brought an action against her former employer The Finish Line, Inc. (“Finish Line”), an athletic retailer in California federal court. Finish Line made a motion to compel...more

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