Arbitration Agreements: Waiving Your Right to Sue?
Construction workers in California work hard, often under tough and dangerous conditions. When disputes occur—whether it’s over missed wages, unsafe work environments, or wrongful termination—workers should be able to seek justice. But what happens when a worker signs an arbitration agreement? Does it mean they are giving up their right to sue?
What Is an Arbitration Agreement?
An arbitration agreement is a contract where both the worker and employer agree to resolve disputes outside of court. Instead of suing, the case goes before a private arbitrator who makes a decision. Employers often include these agreements in job applications, onboarding paperwork, or employee handbooks.
Why Employers Use Arbitration
- Faster Process: Arbitration is usually quicker than going to court.
- Private: Unlike court hearings, arbitration is not open to the public.
- Lower Costs: Employers often find arbitration is less expensive than litigation.
But speed and cost don’t always benefit the worker. An arbitrator’s decision is final and hard to appeal, and many workers feel the system favors employers.
Are You Waiving Your Right to Sue?
In many cases, yes. When you sign an arbitration agreement, you often give up the right to take your dispute to court. That means no judge, no jury, and no public hearing. This can make it difficult to hold employers accountable, especially in industries like construction where violations may be common.
What Does California Law Say?
California has taken steps to protect workers when it comes to forced arbitration. For example:
- Assembly Bill 51 (AB 51): This law bans employers from forcing employees to sign arbitration agreements as a condition of getting or keeping a job.
- Retaliation is Illegal: Employers can’t fire or punish you for refusing to sign an arbitration agreement.
- Employment Rights Still Apply: Even if arbitration is required, employers must still follow labor laws like paying overtime, ensuring workplace safety, and preventing discrimination.
However, legal battles over AB 51 and federal law can make this area confusing. Courts have been back and forth on whether AB 51 is enforceable, which affects how much freedom employers have to demand arbitration agreements.
Can You Get Out of an Arbitration Agreement?
It depends. If you were pressured into signing or didn’t fully understand what you were agreeing to, a court may rule the agreement unenforceable. Some agreements also contain unfair terms that invalidate them under California law.
If you signed an arbitration agreement but still want to sue your employer, don’t assume you’re out of options. It’s best to talk to an experienced attorney who knows California employment law—especially someone familiar with the construction industry.
Need Help Understanding Your Rights?
Working in construction is hard enough without having to fight legal battles alone. If you’re a construction worker in California and are facing issues related to an arbitration agreement, don’t wait. You may still have the right to fight for what you deserve.
Call Jonny Law today at 800-566-4868 for a free consultation. Let a legal expert help you understand your rights and fight for your future.