Is Your Employer Using an Outdated Arbitration Agreement? You May Still Be Able to Sue.
If your employer is trying to force you into arbitration based on an old or questionable agreement, you may have more rights than you think. A recent court decision in California shows that relying on outdated arbitration agreements can backfire for employers — and open the door for employees to take their claims to court.
Key Case: Ford v. The Silver F, Inc. (March 3, 2025)
In Ford v. The Silver F, Inc., Cal. Ct. App. 3rd Dist., No. C096304 (Mar. 3, 2025), the court refused to enforce an employer’s arbitration agreement because it was outdated and didn’t reflect changes in the law following the U.S. Supreme Court’s 2022 decision in Viking River Cruises, Inc. v. Moriana, 596 U.S. 639 (2022). The employer had argued that the employee’s claims should be arbitrated, but the court disagreed — allowing the employee to move forward in court.
Here’s What You Need to Know as an Employee:
1. Outdated Arbitration Agreements Might Not Be Valid Anymore
Employers who rely on old arbitration agreements may lose the right to force employees into private arbitration. If your agreement hasn’t been updated since the Viking River ruling in 2022, it may no longer hold up in court — especially if it attempts to block your right to bring claims under California’s Private Attorneys General Act (PAGA).
2. Employers Must Pay Arbitration Fees on Time — or They Lose the Right to Arbitrate
Under California Code of Civil Procedure § 1281.97, employers must pay their share of arbitration fees within 30 days of the due date. If they miss that deadline — even by mailing a check too late — they are in “material breach” of the agreement. That means you can take your claims to court instead of arbitration.
3. Employers Can Waive Their Right to Arbitration by Delaying
If your employer sits on its hands and doesn’t assert its right to arbitrate early in the case — or if it participates in court proceedings first — it may waive arbitration altogether. In Morgan v. Sundance, Inc., 596 U.S. 411 (2022), the U.S. Supreme Court ruled that courts no longer need to find that the delay caused you prejudice. Just the delay itself can be enough to waive arbitration.
Know Your Rights. Fight Back.
Employers often use arbitration agreements to hide their wrongdoing behind closed doors. But if they’re using an outdated agreement, miss a payment deadline, or delay too long in asserting arbitration, they may lose that protection — and you can take your case to court, in the open, before a judge or jury.
Need Legal Help?
If you’ve been mistreated at work — fired unfairly, harassed, retaliated against, or denied wages — and your employer is trying to force arbitration, talk to a lawyer. You may be able to challenge the agreement and pursue your claims in court.
At WorkRight Law, we fight for workers who’ve been silenced for too long. Let us review your arbitration agreement and help you understand your rights.
Call us today at (562) 760-8803 or visit WorkRightLaw.com