The FAA generally makes arbitration agreements “valid, irrevocable and enforceable” and has been expressly designed to reflect a national policy in favour of arbitration. Under the FAA, a state cannot enact or enforce laws that disrupt, restrict, treat unequally or discriminate remedies. “With the exception of Section 5, where a provision of this agreement is found to be null, void or unenforceable by a competent court or arbitrator, the other provisions remain fully in force without being affected or annulled in any way. Where Part 5 is found to be unlawful, invalidated, null or void by a competent court, the agreement is set aside for workers who are parties to that particular dispute for the purposes of this particular dispute, for the purposes of this case, the jurisdiction of the court that renders the judgment. The implementation of a valid arbitration agreement requires two factors to be taken into account. First, the agreement must define the types of rights that can be submitted to arbitration. Second, the agreement must be linked to California`s contractual laws on the formation of a valid and enforceable agreement. An arbitration agreement is an agreement between employers and their employees to resolve all disputes before a private arbitrator, instead of taking legal action in a civil court. Arbitration agreements are usually found in an employee`s documents when they are first hired. In most cases, your employer never tells the worker that he or she is bound by arbitration in the event of a dispute, let alone explain what that means.
On the other hand, some of the potential concerns related to mandatory arbitration include the following: federal law, on the other hand, is currently ambiguous as to what the applicability of the agreements require arbitration title VII discrimination claims. The source of the dispute in the Ninth Court of Appeal concerns the validity of the 1998 decision of the Court of Justice in Duffield v. Robert Stephens-Co. At duffield, the Court found that the Civil Rights Act of 1991 excluded mandatory reconciliation of Title VII rights. At the same time, California law requires that an arbitration agreement contain certain conditions to be applicable. For example, the employer must pay all arbitration costs, including fees for arbitrators that can easily be tens of thousands of dollars. And an arbitration agreement cannot limit an employee`s rights to “discovery” or damages that can be recovered. In addition, in recent years, state and federal courts in California have refused to impose provisions in arbitration agreements that prevent employees from filing a class action. However, no court in California has decided that it is not appropriate to ask a person to sign an arbitration agreement. Arbitration is subject to both national and federal law.
In fact, California law is often in conflict with federal law, and changes to the laws are underway.