Forced arbitration is one of the most powerful tools employers use to silence California workers. These agreements are not designed to be fair. They are designed to strip employees of their right to a jury trial, hide workplace misconduct from public view, and discourage employees from enforcing their rights.

At Light & Miller, LLP, we aggressively challenge forced arbitration agreements in cases involving workplace discrimination, sexual harassment, retaliation, wage theft, and wrongful termination. Despite what employers claim, forced arbitration is not always enforceable under California law—and we know how to expose illegal arbitration clauses.

What Employers Don’t Tell You About Forced Arbitration

Most employees are pressured to sign arbitration agreements on their first day of work—buried in onboarding paperwork and presented on a “take it or leave it” basis. These agreements typically:

• Eliminate the right to a jury trial
• Block class actions for wage and hour violations
• Limit discovery and evidence
• Force secrecy through confidential proceedings

This is not accidental. Employers use arbitration to reduce liability and avoid public accountability.

California Law Still Protects Employees—If You Know How to Enforce It

California attempted to ban forced arbitration through Assembly Bill 51, but federal courts ruled the law is largely preempted by the Federal Arbitration Act (Chamber of Commerce v. Bonta (9th Cir. 2023) 62 F.4th 473). Employers frequently cite this decision as if it gives them unlimited power.

It does not.

California courts continue to strictly scrutinize employment arbitration agreements and routinely refuse to enforce them when they violate employee rights.

The Armendariz Requirements: Where Most Employers Fail

In Armendariz v. Foundation Health Psychcare Services, Inc. (2000) 24 Cal.4th 83, the California Supreme Court made clear that employment arbitration agreements are enforceable only if they meet minimum fairness standards.

A lawful arbitration agreement must provide:

• A neutral arbitrator
• Adequate discovery
• A written decision
• All remedies available in court
• Employer payment of arbitration costs

Many employer-drafted arbitration agreements fail to meet these requirements. When they do, courts may refuse to enforce the agreement entirely or sever the illegal provisions.

Unconscionability: How Light & Miller, LLP Attacks One-Sided Arbitration Clauses

Forced arbitration agreements are frequently unconscionable under California law because they are:

• Imposed as a mandatory condition of employment
• Drafted entirely by the employer
• Overly one-sided in favor of the company

Provisions limiting damages, shortening statutes of limitation, shifting costs to employees, or allowing only the employer to go to court are classic examples of substantive unconscionability. Combined with coercive presentation, many of these agreements are legally indefensible.

Sexual Harassment and Sexual Assault Claims Cannot Be Forced Into Arbitration

Employers often fail to disclose a critical fact: they cannot force employees to arbitrate sexual harassment or sexual assault claims.

Under the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021, employees may reject arbitration and proceed in court, even if they previously signed an arbitration agreement.

This law restores the right to a jury trial and public accountability in some of the most serious employment cases.

Class Action Waivers and PAGA Claims: Employers Don’t Control Everything

Employers rely heavily on class action waivers, which the U.S. Supreme Court upheld in Epic Systems Corp. v. Lewis (2018) 584 U.S. 497. But class waivers are not the end of the story.

California employees may still pursue Private Attorneys General Act (PAGA) claims. While Viking River Cruises, Inc. v. Moriana (2022) 596 U.S. 639 allows arbitration of individual PAGA claims, representative PAGA claims may still proceed in court depending on the facts.

This area of law continues to evolve—and employers routinely misapply it.

Signing an Arbitration Agreement Does Not Mean You Lose

Employers want employees to believe arbitration is unavoidable and absolute. It is not.

At Light & Miller, LLP, we routinely:

• Defeat motions to compel arbitration
• Expose illegal and unconscionable arbitration clauses
• Force employers into court despite signed agreements
• Preserve employees’ right to jury trials

If your employer is hiding behind an arbitration agreement, that agreement should be aggressively challenged.

Speak With Light & Miller, LLP About Your Employment Case

Forced arbitration exists to protect employers—not workers. Light & Miller, LLP does not accept that imbalance. We fight to hold employers accountable and push cases into court whenever the law allows.

If you are facing discrimination, harassment, retaliation, unpaid wages, or wrongful termination, do not assume arbitration is the end of your case.

Contact Light & Miller, LLP to discuss your legal options today.

This article is for general, informational purposes only and does not constitute legal advice. The law in this area is constantly evolving.