Increasingly, employers are asking employees to sign arbitration agreements. If the arbitration agreement is valid and enforceable, the employee generally waives the right to sue the employer in court and have the case tried before a jury of his or her peers. Employers typically favor arbitration for a variety of reasons, including privacy, control over arbitrator selection, limited rights to appeal, and the ability to have employees waive the right to bring class action lawsuits.
What happens if an employee has claims against an employer, files a lawsuit and then signs an arbitration agreement? Can that employee still be compelled to arbitrate his or her claims? The Court of Appeal for the Fourth Appellate District recently addressed this issue in Franco v. Greystone Ridge Condominium, et al. The Court of Appeal held that an arbitration agreement that is signed after the employee initiates his lawsuit does not preclude compelling those claims to arbitration. (Franco v. Greystone Ridge Condominium, et al., No. G056559, filed Aug. 14, 2019, certified for publication on Aug. 27, 2019). Continue reading “Employees Beware: Arbitration Agreements Can Sometimes be Applied Retroactively”
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