Protecting Your Right to a Fair Process in California Employment Disputes

If your employer pushes arbitration after a workplace violation, you are entitled to a process that moves forward without unnecessary delays. California law offers clear protections when companies stall or refuse to pay arbitration fees. A recent ruling from the California Court of Appeals confirms that employers cannot sidestep these responsibilities without facing legal consequences.

In this case, a worker brought class and representative wage and hour claims, including allegations under the Private Attorneys General Act (PAGA). The trial court ordered the claims into arbitration. However, the employer failed to pay more than $50,000 in required fees within the 30-day window set by California Code of Civil Procedure section 1281.98. That statute exists to protect workers from being trapped in arbitration by employers who delay or obstruct the process. California employment lawyers routinely rely on this provision to hold employers accountable when they attempt to game the system.

Arbitration Deadlines Matter for California Workers

Section 1281.98 exists to prevent employers from benefiting by delay. When an employer initiates arbitration and then fails to pay its share of costs, the employee has a clear legal right to withdraw and return to court. That right is critical in leveling the playing field for workers pushed into private forums where delays can harm both the process and the outcome.

In this situation, the employee requested that the trial court vacate the order compelling arbitration and allow the claims to proceed in civil court. The court initially agreed. Later, after reviewing new arguments from the employer, the court reversed itself, holding that California’s rule conflicted with the Federal Arbitration Act (FAA).

Court of Appeal Reaffirms Worker Rights Under State Law

The California Court of Appeal corrected the trial court’s mistake. It held that section 1281.98 does not conflict with the FAA. Instead, it furthers the federal goal of resolving disputes efficiently. The appellate court emphasized that the rule promotes fairness and prompt resolution, not delay.

The court also made clear that it is the judge, not the arbitrator, who decides whether the employer defaulted by failing to pay. This decision strengthens the legal framework that protects California workers when arbitration agreements are used to silence wage and hour claims.

You Can Fight Back When Arbitration Fails You

When your employer demands arbitration after a workplace violation, they are legally obligated to follow through both in the process and payment. If they fail to cover the required arbitration fees or cause unjustified delays, California law gives you the ability to take action. Under Code of Civil Procedure section 1281.98, you may have the right to withdraw from arbitration and bring your case back to court. This matters because court proceedings offer more precise deadlines, judicial oversight, and a more balanced environment.

If you find yourself in this situation, begin by documenting every communication and notice related to arbitration. Track when your employer was invoiced, what amount was due, and whether it was paid within the 30-day deadline. If that deadline passes without payment, you can file a motion to vacate the order that sent your case to arbitration. Once that motion is granted, you can proceed in court.

Taking swift action is essential. Delays may limit your ability to recover wages, penalties, or damages under the Labor Code. Reaching out to a California employment attorney early allows you to understand your rights and take the necessary steps before time runs out. You may also be eligible to request monetary sanctions under Code of Civil Procedure section 1281.99. When employers try to delay or avoid accountability, you do not have to accept it. The law protects workers from unfair arbitration tactics, and with legal support, you can push forward on your terms.

Call Today to Discuss Your Options

Delays and unpaid fees should never keep you from justice. If you have been forced into arbitration or are pursuing a PAGA or wage and hour claim, speak with a California employment lawyer who focuses exclusively on workers’ rights. To learn more, call The Nourmand Law Firm at 800-700-WAGE (9243) and schedule a consultation. You deserve to be heard, and we are here to help.