United States: California Court Finds Arbitration Agreement Unconscionable

An employer’s arbitration agreement was both procedurally and substantively unconscionable, a California appellate panel determined, affirming a trial court’s denial of an employer’s motion to compel arbitration.

Anthony De Leon filed a lawsuit against Pinnacle Property Management Services, alleging that he was a nonexempt employee whom the company did not compensate for his overtime work or certain business expenses and that he was provided with inaccurate wage statements, according to his 13-count complaint.

Pinnacle moved to compel arbitration. When De Leon submitted an employment application in 2016, he electronically signed an “issue resolution agreement” (IRA), which he was required to sign […]

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By Donato