Another California Court Holds Arbitration Clause in Employment Agreement is Unconscionable – Los Angeles Wage & Hour Claims Attorneys Blumenthal, Nordrehaug & Bhowmik

by Norman B. Blumenthal on March 29, 2013

GavelAnother California court has held that the arbitration clause in an employment agreement is unconscionable.  Compton v. Superior Court.  Therefore, the Second Appellate District of the Court of Appeal of the State of California held arbitration of an employee’s wage and hour claims is unenforceable and cannot be compelled.

The Second Appellate District held that California’s unconscionability case law, that barred arbitration or litigation of class-wide claims on the grounds they were unenforceable (Discover Bank v. Superior Court), was not overridden by the U.S. Supreme Court decision in AT&T Mobility, LLC v. Concepcion which held the reverse.  “Specifically, the appellate court found that since the employment arbitration agreement was required to be signed as a condition of employment it was insufficiently bilateral.   While it required the employee to arbitrate virtually all claims employees typically bring against an employer, it excluded from arbitration claims an employer is most likely to bring against an employee (e.g. claims for injunctive or equitable relief for trade secret misappropriation).  The agreement also provided a shortened statute of limitations for employee claims (one year).   As such, the court held that the agreement was "permeated" with unconscionability and refused to sever the unconscionable provisions and otherwise enforce the agreement.”

If you have an overtime pay claim that needs proper adjudication, call an experienced Los Angeles labor attorney today at Blumenthal, Nordrehaug & Bhowmik at (310) 981-3918.  Blumenthal, Nordrehaug & Bhowmik is a California employment law firm with offices located in San Diego, San Francisco and Los Angeles. The firm dedicates its practice to contingency fee employment law work for issues involving misclassification as a salaried worker exempt from overtime, failure to pay vacation wages, misclassification as an independent contractor, off-the-clock work, wrongful termination, discrimination and other California labor laws.

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