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Friday, September 25, 2026

Employer Waived Its Right to Demand Arbitration of Employee's ... - SHRM

Takeaway: An employer that delays in raising its right to arbitrate an employee's claims against it and participates in judicial pretrial proceedings may waive its right to compel arbitration of the claims.

An employer waived its right to invoke arbitration of a former employee's claims by unreasonably delaying its arbitration demand and acting inconsistently with an intent to arbitrate, a California appeals court recently ruled. The employer waited 17 months after the employee filed suit to seek arbitration of the claims. In the meantime, it requested a trial and engaged in pretrial discovery.

In August 2018, when the employer hired the employee as a sales associate, she signed an agreement to settle all workplace claims through binding arbitration and to waive her right to bring an action in court.

The employee resigned from her position three months after being hired. She claimed she had been subjected to ongoing, sexually explicit and demeaning comments, unwanted touching and indecent exposure from a co-worker, as well as other harassing conduct from the employer's customers.

On March 25, 2019, the employee filed a complaint against her former employer, bringing claims for violations of the California Fair Employment and Housing Act based on sex discrimination, sexual harassment and retaliation. She also raised claims for negligent hiring, supervision and retention.

On July 8, the employer, represented by counsel, answered the complaint, asserting the arbitration...



Read Full Story: https://news.google.com/__i/rss/rd/articles/CBMieWh0dHBzOi8vd3d3LnNocm0ub3JnL...