California Court Reinforces Employee Power When Employers Delay Arbitration Fees

When your employer forces you into arbitration and refuses to pay required fees, the law gives you the right to walk away from the process. A recent California appellate decision has made that clear, strengthening the ability of employees to seek justice without being trapped by delay tactics.

What Happened in the Sanders Arbitration Dispute

In Sanders v. Superior Court, an employee brought individual wage and hour claims and a representative PAGA action against a former employer. The employer successfully moved to compel arbitration for the individual claims. However, they then failed to pay the required arbitration fees within the 30-day deadline of California Code of Civil Procedure section 1281.98.

The employee requested to bring the case back to court. The trial court wrongly denied the request, stating that the California statute conflicted with federal law. On appeal, the California Court of Appeal reversed that decision, holding that workers do have a legal right to exit arbitration if the employer does not meet its financial obligations.

Why This Decision Matters for California Workers

Employers frequently rely on arbitration agreements to keep claims out of public courtrooms. These agreements are often written to benefit the company, not the employee. Sanders confirms that if the employer does not follow its own rules, especially when paying arbitration fees, then the employee is no longer bound to that process.

The court clarified that when a company fails to pay on time, the employee has the sole power to bring the case back to court. The law exists to prevent companies from stalling or frustrating the claims process. When that 30-day payment window closes without action, so does the employer’s ability to control where the case is heard.

How California Law Protects You from Arbitration Abuse

California has passed strong statutes to protect workers from employers who misuse arbitration. Section 1281.98 is designed to prevent companies from using delay as a weapon. If your employer compels arbitration, they must follow through. If they do not pay, you can take your case straight back to court without having to prove harm or bad faith.

This case also involved a PAGA claim, a powerful tool that allows workers to sue on behalf of others affected by similar violations. The appellate court’s ruling ensures that failure to pay arbitration fees does not block PAGA claims from moving forward. That is critical for protecting the rights of groups of employees facing wage theft, denial of breaks, or other violations.

How a Skilled Attorney Can Disrupt Employer Delay Tactics

When you bring a claim for unpaid wages or other violations, your employer may immediately file a motion to compel arbitration. Many workers think that means the case is out of their hands. It is not. If the company fails to pay its share of arbitration fees, you can respond with a motion to return your case to court.

Timing is everything. Employers may miss deadlines, fail to respond, or attempt to negotiate private agreements that do not serve your interests. When you work with an attorney who tracks every procedural move, you can react quickly and take back control of your case.

At The Nourmand Law Firm, APC, we monitor every deadline, payment, and document in your case. If your employer fails to comply with arbitration rules, we act fast to protect your right to proceed in court.

Call The Nourmand Law Firm, APC to Assert Your Rights Today

You do not have to tolerate delay tactics or unanswered claims. If your employer misses an arbitration payment deadline or fails to follow legal procedures, you have the right to take action. At The Nourmand Law Firm, APC, we only represent workers. We are not afraid to take on employers who try to avoid responsibility.

Call 800-700-WAGE (9243) now to speak with a California employment attorney who puts your rights first. We are ready to help you move your case forward and pursue the justice you deserve.