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Court rules some arbitration agreements are enforceable

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in Human Resources

Employers sometimes can’t get arbitration agreements to stick in California. Now an appellate court has finally upheld such an agreement.

Recent case: When Gabriela Roman went to work for Flo-Kem, she signed an arbitration agreement. The contract was on the last page of the employment application and was clearly set out so that applicants would see and read it. In fact, the agreement said “Please Read Carefully, Initial Each Paragraph and Sign Below.” The entire agreement was just four sentences long. It specified that applicants agreed that all disputes would go to binding arbitration.

Roman sued, alleging the agreement was invalid. The court disagreed and ordered arbitration. (Roman v. Superior Court, No. B209855, California Court of Appeal, 2nd Appellate Division, 2009)

Final note:
Arbitration agreements are not do-it-yourself projects. Have your attorney draft them.

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