Employers operating in California often ask employees to agree to arbitrate employment-related disputes as a term and condition of employment. In its recent Chamber of Commerce v. Bonta decision, the Ninth Circuit took a significant step toward prohibiting such mandatory employment arbitration agreements. However, the combination of a 2-1 panel decision (authored by a visiting judge from the Tenth Circuit), a scathing dissenting opinion, and a holding that splits with decisions from the First and Fourth Circuits all but ensures more litigation. As a result, the case is far from over, so while employers eventually may have to consider changing their arbitration agreement practices, they very likely have some time to let the dust settle before doing so.
Continue Reading The Ninth Circuit, Mandatory Arbitration Agreements, and “Clown Bop Bags”
