Yesterday, we looked at a recent California court case that highlighted the various factors you need to think about when you draft your arbitration agreements—as well as how you present them to employees. Today, some tips for success.
[click here for the facts of the case]
How To Get Proper Employee Consent
The Court of Appeals in this case focused largely on how the employer went about obtaining its employees’ consent to arbitration. How can you get consent in a way that will stand up in court?
Make It Obvious
To begin with, make sure you provide notice of the mandatory arbitration requirement on all standard employment applications and in written offers of employment.
The mistake AccentCare made wasn’t necessarily that it included the agreement in the job application; rather, it was slipping the agreement in among other standard provisions and making it “take-it-or-leave it.” Instead, employers should bring arbitration requirements to applicants’ attention, give them time to review the requirements, and be willing to discuss and explain them.
Your applications and offers should also clearly refer to a separate document with the arbitration agreement, procedures, and rules. New employees should sign a waiver forfeiting their right to pursue claims covered by the agreement in court and acknowledging they received the arbitration document.
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The Bare Minimum
When it comes to the terms of the agreement itself, California courts have established that enforceable arbitration agreements must, at a minimum:
- provide for neutral arbitrators
- provide for adequate discovery of facts and evidence by both parties before arbitration
- require a written arbitration decision that will allow a court to review the decision
- provide for all remedies that would be available in court
- not require employees to pay unreasonable costs or arbitration fees (an employee’s expenses shouldn’t unreasonably exceed those that would be incurred pursuing a lawsuit in court)
- provide for mutuality (meaning both parties have to pursue claims arising out of the employment relationship in arbitration, not the courts)
Effective Dispute Resolution, Retaliation, Leaves, Wage/Hour, Meals & Breaks, and More—Just for California Employers
Being an HR professional in California is a high-hazard activity, to say the least. In addition to juggling all of the federal rules and requirements, you also need to keep track of a very nit-picky set of state-specific, highly employee-friendly rules.
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SOCIAL MEDIA
You may or may not be on Twitter, Facebook, LinkedIn, Google+, and so on. But your employees are—and their social media habits could be costing you big in lost productivity. They could even be setting you up for a damaging lawsuit, depending on what they’re saying and how far they’re spreading the word. You won’t want to miss our up-to-the-minute social media session, where you’ll learn:
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One thing I’ve noticed coming up again and again in these cases is that the agreements are invalidated when employers fail to provide employees with a copy of the applicable arbitration rules, or at least info on how to access those rules (e.g., a URL).
One thing I’ve noticed coming up again and again in these cases is that the agreements are invalidated when employers fail to provide employees with a copy of the applicable arbitration rules, or at least info on how to access those rules (e.g., a URL).