California Employment Arbitration Agreement Sample: What You Need to Know
In California, employers are required to provide their employees with an arbitration agreement when they are hired. This agreement is a legal document that outlines the terms and conditions of arbitration should a dispute arise between an employee and employer. The agreement also outlines the rights and responsibilities of both parties.
If you’re an employer in California, it’s important to have a well-drafted arbitration agreement that clearly outlines the terms of the arbitration process. Here’s a sample arbitration agreement that can help you understand what to include in your own agreement:
This arbitration agreement (“Agreement”) is entered into by and between [Employer] (“Employer”) and [Employee] (“Employee”).
1. Agreement to Arbitrate
Employer and Employee agree that any and all disputes, claims, or controversies arising out of or relating to Employee’s employment with Employer or the termination of such employment, including any claims arising under state or federal statutes or common law, shall be resolved by binding arbitration.
2. Arbitration Process
The arbitration shall be conducted in accordance with the rules of the American Arbitration Association (“AAA”) in effect at the time the demand for arbitration is made. The arbitration shall take place in [City], California.
3. Arbitration Decision
The arbitration decision shall be issued in writing and shall include the findings of fact and conclusions of law upon which the decision is based. The decision of the arbitrator shall be final and binding on both parties.
The arbitration proceedings and any documents, evidence, or other information exchanged during the arbitration shall be confidential and shall not be disclosed to any third party except as required by law.
The parties shall each be responsible for their own costs, including attorneys’ fees, associated with the arbitration.
6. Waiver of Class or Collective Action
The parties agree that any claims subject to arbitration under this Agreement shall be arbitrated on an individual basis and not as a class or collective action. Any claims that are not subject to this Agreement shall not be affected by this waiver of class or collective action.
7. Effective Date and Termination
This Agreement shall be effective as of the date that Employee signs it and shall remain in effect until terminated by either party. The termination of this Agreement shall not affect any claims that have been submitted to arbitration prior to the termination of this Agreement.
As an employer in California, it’s important to have a well-crafted arbitration agreement that outlines the terms of arbitration in case a dispute arises between an employee and employer. This sample arbitration agreement can help you draft your own agreement in compliance with California law. It’s always best to consult with an attorney who is experienced in employment law to ensure that your agreement is legally sound and enforceable.