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What If Employee Refuses To Sign Arbitration Agreement
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However, what happens if the employer deploys the arbitration agreement to current employees, but an employee resists and refuses to sign? Can the employer dismiss the employee? Should he do that? Note that not all arbitration agreements are considered valid when challenged in court. For example, it can be distorted, biased against the employer, or forced to cover too much of the cost. In these situations, the employee can take legal action to challenge the agreement and ask to sue their case before a judge or jury. Parties who choose to resolve their disputes through arbitration have the advantage of choosing their arbitrator. This is especially useful if you know that your industry is very technical or complicated, where someone with expertise is beneficial. Third, your employer cannot take action against you if you do not sign the arbitration agreement. This type of agreement is unenforceable unless you sign it. If you refuse to sign, your employer may not do anything in response. At the same time, California law requires that an arbitration agreement contain certain conditions to be enforceable. For example, the employer must bear all the costs of arbitration, including arbitrators` fees, which can easily amount to 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 enforce provisions of arbitration agreements that prevent employees from filing class actions. However, not a single court in California has ruled that it is inappropriate to require a person to sign an arbitration agreement.
As mentioned earlier, it has become almost common for some employers to include labour arbitration agreements in standard forms and working documents. As an employee, you may not be aware that you have signed your rights to sue, as the labor arbitration agreement is usually included as a clause in an employment contract or employee manual. Since the arbitration agreement you sign only applies to you and your employer, you can still sue your employer for certain reasons. For example, if you feel that your employer has discriminated against you, you can contact the Equal Employment Opportunity Commission (EEOC) and file a complaint. The EEOC may sue your employer on your behalf because the arbitration agreement applies only to you, not to federal or state authorities. In Williams v. Parkell Products, Inc. (No. 03-7164, December 24, 2003), the Court of Appeals for the Second Circuit clarified that it is not illegal to dismiss an employee if he or she refuses to sign an arbitration agreement. In fact, the worker claimed that the defendant had denied him equal pay and promotion on the basis of his race, in violation of Title VII, and that he had retaliated for complaining of discriminatory harassment […].