Rare win for employers with arbitration agreements in California

Even though the California Arbitration Act (CAA) and the Federal Arbitration Act (FAA) clearly express a strong public policy favoring the enforcement of arbitration agreements, California courts have a long history of finding reasons not to enforce them. In the following case, the trial court refused to enforce the arbitration agreement, and the employer appealed. In a rare win for employers, the court of appeal concluded the trial court was mistaken and that the arbitration agreement was indeed enforceable.

Employee signs agreement, still files lawsuit

On December 8, 2014, Altamed Health Services Corp. sent Erendira Cisneros Alvarez an offer letter. The letter referenced an enclosed arbitration agreement and asked her to review, sign, and return it along with the signed offer letter.

Although there was an argument over when Alvarez signed the offer letter, there was no dispute that she did sign it. She claimed not to have remembered receiving or signing the arbitration agreement, but Altamed's evidence included a copy of the agreement signed by her and dated "12-18-14."

After Altamed terminated Alvarez in April 2017, she filed a lawsuit in April 2019 asserting various Fair Housing and Employment Act (FEHA) violations, wrongful termination in violation of public policy, defamation, and intentional infliction of emotional distress. The employer filed a request to compel arbitration, which the trial court denied. Altamed appealed.

Court of appeal disagrees