The space company's standard employee agreement couldn't survive scrutiny
Blue Origin just lost a court battle over its own arbitration agreement – and every HR team in California should be paying attention.
On April 24, the California Court of Appeal struck down the arbitration clause in Blue Origin's standard employment agreement, finding it unconscionable on four separate grounds and refusing to salvage any part of it. The case landed in the Second Appellate District after the space company tried to force a former senior director into private arbitration rather than let his claims proceed in court.
Craig Stoker joined Blue Origin as a senior director of program management in August 2020. He signed the company's standard employee agreement at the time of hire. According to his account, a company recruiter told him the agreement contained standard terms, that everyone had to sign, and that everyone always did sign. Stoker said he had questions about the documents, but the recruiter did not offer to answer them. Blue Origin did not present any evidence that the agreement's terms were negotiable.
Stoker was terminated in October 2022 after raising complaints about the company's safety practices. He alleged that his safety complaints were ignored because of his gender – that Blue Origin employees believed he should "man up." In November 2023, he filed suit alleging retaliation, sexual/gender discrimination, sexual/gender harassment, wrongful termination, and several other...
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