Attention California Employees: Protect Your Rights Against Unfair Arbitration Agreements

On May 24, 2024, the California Court of Appeal delivered a significant ruling in Cook v. USC, 102 Cal.App.5th 312 (2024), rehearing denied (June 13, 2024), declaring the University of Southern California’s (USC) arbitration agreement with its employee, Pamela Cook, unenforceable. This landmark decision underscores the importance of employees being vigilant about the terms of arbitration agreements imposed by employers.

Key Findings from the Case:

1. Infinite Duration: USC’s agreement stipulated that it would “survive the termination of Employee’s employment” and could only be changed through a written document signed by the University’s President. The court found this provision unconscionable due to its perpetual nature.

2. Overly Broad Scope: The agreement mandated arbitration for “all claims, whether or not arising out of Employee’s University employment.” This meant that even unrelated future incidents, such as a personal injury at a university event, would be subject to arbitration, which the court deemed excessively broad and unfair.

3. One-Sided Obligations: While Ms. Cook was required to arbitrate all claims against USC and its related entities, only USC was obligated to arbitrate claims against her. This lack of mutuality was considered unjustly biased in favor of the employer.

What This Means for You:

If your employer has presented you with an arbitration agreement containing terms that are perpetual, excessively broad, or one-sided, these provisions may be unenforceable under California law. It’s crucial to understand that you have rights and are not obligated to accept unfair terms that could limit your legal recourse.

Take Action:

If you believe your employer’s arbitration agreement is unfair or if you’re facing workplace issues such as discrimination, retaliation, or failure to accommodate disabilities, it’s essential to seek legal advice. An experienced employment attorney can assess your situation, inform you of your rights, and help you pursue justice.

We’re Here to Help:

Our legal team specializes in representing employees in disputes over unfair arbitration agreements and workplace violations. We are committed to ensuring that your rights are protected and that you receive fair treatment under the law.

Contact us today. Don’t let unfair arbitration agreements or workplace injustices go unchallenged. Reach out to us for a confidential consultation to discuss your case and explore your options.

Remember, you have the right to fair treatment in the workplace. Let us help you stand up against unfair practices and secure the justice you deserve.