Arbitration agreement did not survive rehire

How long does a valid arbitration agreement last? Will it govern an employee after a four-month break in employment? The California Court of Appeal again teaches us the importance of complete documentation.

Poor paperwork precludes enforcement

Jasmin Vazquez started working for SaniSure Inc. through a staffing agency in July 2019. She was hired directly by the company as an at-will employee that November. Her employment was “for no definite period,” and either she or SaniSure could terminate the employment relationship at any time.

As part of her hiring, SaniSure provided Vazquez with onboarding documents, including agreements to “utilize binding arbitration as the sole and exclusive means to resolve all disputes that may arise out of or be related in any way to [her] employment.” Subject to limited exceptions, she agreed that any claim she had against the company would “be submitted to and determined exclusively by binding arbitration.” She also agreed to bring any claim individually, waiving her right to pursue a class or collective action. Changes to these agreements, if any, could be made only in writing.

Vazquez ended her employment with SaniSure when she resigned in May 2021. Four months later, she negotiated a new employment offer and returned to work for the company. During negotiations, the parties did not discuss whether she would be required to sign arbitration agreements again or whether claims related to her employment would be subject to arbitration. Her second stint of employment with SaniSure ended in July 2022.