California employer made employees sign new arbitration policy as condition of continued employment
A California court has recently rejected allegations that a company waived its right to arbitrate by waiting 13 months before attempting to initiate arbitration and forced the employee to spend time and money to prepare for litigation.
In Quach v. California Commerce Club, Inc., Commerce Club, which operates a hotel and casino, hired the plaintiff in 1989 to supervise activity on the casino’s gambling floor. In 2015, the employer made all its employees sign a new arbitration policy as a condition of continued employment.
The arbitration agreement covered all matters directly or indirectly related to the employees’ recruitment, employment, or termination of employment. Employees had to submit covered disputes to an informal resolution process within the company and to resolve the disputes through arbitration if necessary.
In 2018, the employer terminated the plaintiff’s employment after a customer paid the casino with $100 in counterfeit bills during his shift. In November 2019, the plaintiff filed a lawsuit against his former employer. He made claims of wrongful termination, age discrimination, retaliation, and harassment.
In December 2020, the employer filed a motion to compel arbitration. The executive director of human resources declared that the company had difficulty finding a complete copy of the arbitration agreement that the plaintiff signed and only discovered it...
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