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Ensure arbitration agreement includes statutory claims

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in Human Resources

If you want to take advantage of the arbitration process to resolve workplace issues, make sure the arbitration agreement you give employees covers enough territory.

Remember, for example, to include statutory claims in the language. If you don’t, employees will still be able to sue in court to enforce those laws.

Recent case: Several employees sued Axxis Network over wage-and-hour claims. They worked under a labor agreement that provided for dispute arbitration, but it was silent on whether it covered statutory claims.

Therefore, the court said it did not—and sent the case to trial. (Flores v. Axxis Network & Telecommunications, No. B207453, California Court of Appeal, 2nd Appellate District, 2009)

Advice: Always get an experienced attorney to review arbitration agreements.

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