Episode 29 - Recent Big News in Arbitration

Episode 29 - Recent Big News in Arbitration begins with an overview of the Supreme Court ruling in Chamber of Commerce v Bonta.  On February 15, 2023 the 9th Circuit Court of Appeals  decided that the Federal Arbitration Act (FAA) preempts California AB 51, rendering it literally unenforceable.  We, the Watkins Firm, represent employers, people who hire people.  They need to know what the law is and how this important decision changes the game.

In Episode 29 Dan lays out the need for arbitration clauses as an employer and why this important edition to an employment agreement is so important.  You'll need to update the employee manual and your policies and procedures.  The employment contract accomplishes two key things: it identifies the parameters of the experience between employee and employer, and it gives them notice of a lot of laws and things you are required to do as an employer.  Your employment contract protects you and the arbitration agreement ensures you can prevent frivolous law suits and settle disputes quickly and reasonably.

In Episode 29 Dan shares the atmosphere surround PAGA cases and plaintiff's attorneys.  He describes them as "hungry wolves" who are looking for their next meal.  You as an employer don't want to be that meal.  And when a disgruntled employee responds to their constant barrage of advertising, and the plaintiff's attorney sees the arbitration agreement, it will take all the incentive out of the case for them and the employee must resolve things in a straight forward manner with you the employer.