Labor/Employment
Mar. 2, 2011
Another Round of Restrictions for Employment Arbitration Agreements
Arbitration agreements have no power over an employee’s right to seek an informal hearing before the Labor Commission for unpaid wages. By Scott A. Freedman of Morris Polich & Purdy LLP.
On Feb. 24, in Sonic-Calabasas A, Inc. v Frank Moreno, the state Supreme Court declared that mandatory employment arbitration agreement provisions, which waive an employee's right to a "Berman" hearing, are contrary to public policy and unconscionable. Under California Labor Code Section 98, a "Berman" hearing is when an employee with a claim for unpaid wages seeks his right to an informal hearing in front of th...
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