Can You Sue Your Employer After Signing an Arbitration Agreement?

Some employers ask their staff to sign arbitration agreements in order to protect themselves from future lawsuits. The agreement essentially means that employees can only pursue legal action against their employer via arbitration.

Can you sue if you signed an arbitration agreement? Is it possible to challenge a mandatory arbitration agreement in California? D.Law’s employment attorneys share what you need to know. 

How Employment Attorneys Help You Understand Your Rights

If your employer asks you to sign any written agreement, you’ll need to understand how it may affect you in the future. For example, an arbitration agreement could potentially limit you from taking your employer to court for issues like wrongful termination or discrimination. Signing a non-disclosure agreement, on the other hand, may prevent you from revealing confidential information about a business either during or after your employment. 

It’s smart to review these contracts with a legal professional before signing. Workers who want legal guidance may turn to employment attorneys in San Diego to fully understand the agreement and how signing it would impact them going forward. 

The Pros and Cons of Arbitration Agreements

Before we answer the question, “Can you sue if you signed an arbitration agreement?” let’s first explain arbitration agreements. These contracts do not prevent you from taking any legal action against your employer. However, they limit you to resolving disputes through arbitration rather than filing a lawsuit and taking the case to court. 

Arbitration can have some advantages. Some find the process less intimidating than litigation because it’s more informal. It also tends to be a faster way to resolve disputes compared to cases that go to trial. 

However, there are some potential drawbacks. When arbitration is the only way you can take legal action against your employer, you will present your argument to one private arbitrator instead of a judge or jury. Unlike litigation, you may be limited to the amount of information you receive from the other side. You generally cannot appeal the arbitrator’s final decision. 

Keep all of this in mind if you’re on the fence about signing an agreement. 

What Are Your Employee Rights After Signing an Arbitration Agreement?

Can you sue if you signed an arbitration agreement requested by your employer? While the signed contract may seem legally binding, it may not be enforceable in some instances, including:

• It violates public policy: Agreements cannot restrict employees from making claims regarding the state’s employment laws. They merely impact where and how those claims are resolved.  
• It heavily favors your employer: Courts may not enforce the agreement if it contains terms that unfairly favor the employer over the employee. 
• It was signed without your clear, voluntary consent: You may be able to challenge the validity of the contract if you were coerced into signing it. 

Carefully read through any document you’re asked to sign, and consult an employment attorney if you’re thinking of pursuing a claim against your employer. Challenging the signed agreement may be possible and potentially give you an opportunity to sue your employer. 

Breaking Down Federal and California Laws on Workplace Arbitration Agreements

Workers in many states question their employee rights under mandatory arbitration agreements. Although California has passed a law that restricts mandatory arbitration agreements, federal courts have challenged some of its aspects. Under the Federal Arbitration Act, employers are generally permitted to require these agreements as a condition of employment. 

Suppose you receive a job offer, and the employer presents you with an arbitration agreement. Refusing to sign it may jeopardize the employment opportunity. What can you do?

Take the time to read through the document and understand its terms. You may decide to consult a lawyer and potentially negotiate some of the terms before agreeing to sign. 

Review Your Options With a Legal Professional

Signing any type of contract with your employer could have legal implications. You may be left asking key questions like “Can you sue if you signed an arbitration agreement?” and “Are the terms of this agreement fair?” 

Reach out to D.Law if you’re unsure of your rights. Our attorneys have a deep understanding of California employment laws and may be able to help. Turn to us if you have questions about enforcing arbitration agreements, filing lawsuits without a right-to-sue letter, and much more. 

Contact us today to request a free case evaluation. We have locations throughout the state and more than 40 attorneys working for the firm. Call (818) 275-5799 or submit our online form to get started.