Red Bull can't compel employee to arbitrate age, sexual harassment claims

In this case, a midlevel sales manager filed an age discrimination and sexual harassment lawsuit, and the employer sought to compel arbitration based on the arbitration agreement he signed when he was hired. The sales manager argued the agreement was unenforceable because it wasn't mutual, it excluded from arbitration claims under the company's confidentiality agreement, and it limited arbitral discovery (i.e., the exchange of evidence). The trial court initially determined the agreement was enforceable but then changed its mind. The appellate court examined whether the agreement's lack of mutuality and limitations on discovery rendered it unenforceable.

Facts

In June 2018, Scott Davis filed a complaint against executives at Red Bull North America, Inc., alleging age discrimination, sexual harassment, and hostile work environment in violation of the Fair Employment and Housing Act (FEHA) as well as intentional and negligent infliction of emotional distress. Davis, who is 56 years old, claimed that high-ranking executives at Red Bull made derogatory comments about his age, passed him over for promotions, and wrongfully terminated his employment because of his age. He further alleged that he was subjected to a hostile and abusive work environment because he complained that high-ranking executives sexually harassed women in the workplace.