Labor/Employment
Aug. 31, 2026
Courts should stop rescuing unlawful arbitration agreements
Can courts still enforce pre-dispute employee arbitration agreements that do not meet the Armendariz requirements?
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Twenty-six years ago, the California Supreme Court held in Armendariz v. Foundation Health Psychcare Services, Inc. (2000) 24 Cal.4th 83 ("Armendariz"), that pre-dispute employee arbitration agreements must meet five minimum standards of fairness to be enforceable where the agreement purported to include statutory employment claims, such as those made pursuant to the Fair Employment and Housing Act. In particular, the agreement to arbitrate must: (1) ensure...
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