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Saturday, October 24, 2026

The 12 days of California Labor & Employment Series – Day 2: Failure to Timely Pay Arbitrator May Lose the Right to Arbitrate - JD Supra

In the spirit of the season, we are using our annual "12 days of the holidays" blog series to address new California laws and their impact on California employers. On this second day of the holidays, my labor and employment attorney gave to me: two turtle doves and SB 762.

Over the last few years, California has implemented numerous laws regarding arbitration. In addition, the courts continue addressing cases involving whether a party may mandate arbitration. Prior to 2019, an employer could generally require an employee to enter into an arbitration agreement, even as a condition of employment. In addition, the drafting party was required to pay the arbitration fees and costs within 30 days after the due date. The arbitration debate included common issues such as: Are mandatory arbitration policies enforceable? Can an employer arbitrate an issue? Can an employee move the case from arbitration to state or federal court? AB 51, which took effect on January 1, 2020, banned mandatory arbitration agreements as a condition of employment. Yet, arbitration issues continue.

Generally speaking, larger employers have a specific and detailed process on how arbitration fee payments are to be made and who issues these payments. It is not always a quick process. Under these procedures payment can be delayed. In addition, under prior law, there were no requirements placed on the arbitrator with regard to when to send the invoice or advise of a due date. Due to this lack of oversight,...



Read Full Story: https://www.jdsupra.com/legalnews/the-12-days-of-california-labor-7707992/