Should You Sign That Arbitration Agreement? A Worker’s Guide

You’ve just landed a job, or are re-signing a contract, and there it is: the arbitration clause. Buried in fine print, it says you’re giving up your right to sue your employer in court. Do you have to sign it? Can they really enforce it? And what happens if you’re discriminated against or fired unfairly?

Key Points

1. What is an arbitration agreement?

It’s a clause that forces legal disputes into private arbitration rather than public court. Most limit your ability to sue, join class actions, or get a jury trial.

2. Are they enforceable in California?

Not always. Courts may strike them down if they are:

• Unconscionable (unfair terms, hidden language, one-sided)

• Forced under duress

• Too vague or broad

• Waive rights like PAGA (Private Attorneys General Act) claims

3. Do I have to sign it to get the job?

As of now, employers can require arbitration as a condition of employment. But recent state and federal developments have created exceptions, especially around discrimination and sexual harassment claims.

4. What if I already signed?

All is not lost. Courts can still invalidate unfair agreements. And even if enforceable, some rights, like speaking up about discrimination or filing certain agency complaints, remain protected.

Conclusion

If you’ve experienced discrimination or retaliation, don’t assume you’ve waived your rights. Let a lawyer review the agreement. We’ll let you know what’s enforceable and what’s not.

Want to get your arbitration clause reviewed by our employment law team? Contact us today, it’s free!