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Court: Employee who agrees to arbitration must stick to it

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in Employment Law,Human Resources

The Court of Appeal of California has reversed a lower court order denying arbitration and ordered the case into arbitration instead.

Recent case: Valo worked for three years for a company that provided charter transportation. He drove an airport shuttle van. He signed an agreement outlining that he was an independent contractor and that any contract disputes would go to arbitration. Later, he sued, alleging he was really an employee.

The appeals court concluded Valo’s claim must be arbitrated because the contract spelled out their agreement and provided for arbitration of the terms of the contract. In other words, an arbitrator will have to decide whether the contract terms legally define Valo as an independent contractor. The court system won’t decide. (Khalatian v. Prime Time Shuttle, No. B255945, Court of Appeal of California 2015)

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