Seyfarth Synopsis: The California Court of Appeal held that separate arbitration and confidentiality agreements that were executed simultaneously during initial hiring should be read together, such that the unconscionability of the confidentiality agreement rendered the arbitration agreement unenforceable. Alberto v. Cambrian Homecare.

Facts

When Jennifer Playu Alberto was hired by Cambrian Homecare in 2019, she executed a variety of agreements in conjunction with her orientation. Among the agreements were an arbitration agreement, a confidentiality agreement, and an addendum thereto.

The arbitration agreement called for the arbitration of any claims relating to Alberto’s employment. The agreement contained a full waiver of class, collective, or representative claims.

The confidentiality agreement required Alberto to keep all employee information (e.g., names, addresses, and phone numbers) confidential. It stated that disclosure of such information would cause “irreparable injury,” entitling Cambrian to seek injunctive or equitable relief, without first posting a bond. Furthermore, the prevailing party in a dispute litigated under that agreement would be entitled to its “reasonable attorney’s fees and costs.”

On October 27, 2020, Alberto filed a complaint against Cambrian, alleging multiple wage-and-hour causes of action. After Alberto filed an amended complaint adding that she was an “aggrieved employee” under the Private Attorney General Act (“PAGA”), Cambrian filed a...

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