Fired over orientation in California. What happened next?

Feeling trapped by a contract’s terms is common in California, especially with employment arbitration agreements. Understanding the law is crucial for navigating these issues. This article highlights how a key court ruling provides solutions for dealing with unfair agreements.

Situation

Case Overview

In California, a case arose involving two employees and their healthcare employer. They claimed they were fired because of their sexual orientation after facing harassment at work. The employer had them sign an arbitration agreement, meaning disputes would be handled outside of court.

Plaintiff’s Claim

The employees argued they were unfairly terminated due to discrimination. They believed the arbitration agreement was unfair and discouraged them from pursuing their rights under the California Fair Employment and Housing Act (FEHA). They said that the agreement was one-sided and costly, limiting their ability to seek justice.

Defendant’s Claim

The healthcare company argued the arbitration agreement was fair and legal. They said arbitration was a good way to solve disputes quickly and that the agreement allowed for fair procedures. The employer insisted that agreeing to arbitration was a condition of employment.

Judgment Result

The court ruled in favor of the employees. It found the arbitration agreement unenforceable because it was unfair and went against public policy. The court reversed the previous decision that supported the employer and determined that the claims should be resolved in court, not through arbitration.

Solution

Immediate Actions

If you find yourself in a situation where an arbitration agreement seems unfair, it is important to consult a lawyer immediately. They can help you understand your rights and guide you through the legal steps. Document any instances of discrimination or unfair treatment as evidence for your case.

Filing a Complaint

To challenge an unfair arbitration agreement, you may need to file a complaint in court. Your lawyer can help draft this document, detailing why the agreement is unconscionable. Make sure to include relevant laws, like the FEHA, to strengthen your argument.

Negotiation and Settlement

Before going to court, consider negotiating with your employer. If you hold a strong position, like a senior role, you could leverage that to alter the unfair terms. If negotiation fails, your lawyer can help you pursue litigation or seek a fair settlement.

FAQ

What Is Arbitration?

Arbitration is when a neutral person, called an arbitrator, helps resolve a dispute. This decision is usually final and not handled by a court.

Is Arbitration Mandatory?

Arbitration can be mandatory if your contract says so. This means you must go through arbitration instead of going to court.

Can I Sue Instead?

If you signed a mandatory arbitration agreement, you might not be able to sue unless the court finds the agreement unfair.

What Is Unconscionability?

Unconscionability means a contract is so unfair to one side that it should not be enforced.

How Are Costs Shared?

Costs for arbitration are often split between the parties, but sometimes the employer pays in employment disputes.

Can Terms Be Changed?

You can change contract terms if both parties agree, or a court might change unfair terms.

What If I Refuse?

If you refuse to agree to arbitration, you might lose the job or service opportunity linked to the contract.

Are All Claims Arbitrable?

Not every claim can be arbitrated. Some rights, especially statutory ones, need to be protected in court.

What About Public Policy?

If an arbitration agreement goes against public policy, it might not be enforceable.

Can I Appeal Arbitration?

Appealing an arbitration decision is hard, but courts can review to ensure it meets legal standards.