Alert - Employer's Procedural Modifications to Arbitration Process Renders Arbitration Provision Unenforceable

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As we have noted previously, the United States Supreme Court has repeatedly reaffirmed the validity of provisions in employment contracts requiring the employer and the employee to arbitrate disputes arising out of the employment relationship[1]. Arbitration provisions in employment contracts are generally attacked on either one of two grounds: (1) the employee never agreed to the provision; or (2) the arbitration provision itself is unconscionable[2]. A recent opinion issued by California’s First Appellate District is an example of how an employer’s modifications to standard pre-arbitration procedures with respect to filing deadlines and discovery can limit the employee’s rights to the point where the arbitration provision itself becomes unenforceable. The case is Baxter v. Genworth...
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