California: Employees Can Provide Implied Consent to Arbitration Agreements Over Their Own Objections


All Employers with CA Employees


April 10, 2019


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In Diaz v. Sohnen Enterprises, the California Court of Appeal stated that an agreement to arbitrate employment disputes was formed by implied consent following notice to the employee. There, the employer notified its employees that it was changing the terms of its dispute resolution agreement, including requiring arbitration of all claims. A copy of the agreement was provided to employees, the terms were discussed in a staff meeting in English and Spanish, and the employees were told that continuing to work for the employer would constitute acceptance of the agreement, regardless if the agreement was actually signed. An employee subsequently indicated her refusal to sign the agreement but intended to continue working. She then filed a discrimination lawsuit against the employer.

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