Compliance Stuff

The Supreme Court of California is set to decide whether the Federal Arbitration Act (FAA) preempts a California statute that requires employers to forfeit the right to arbitrate disputes with employees if arbitration fees are not paid in a timely manner. The case could answer significant questions about the extent to which the FAA may preempt California’s laws regulating employment arbitration. Quick Hits The Supreme Court of California is poised to determine whether the Federal Arbitration Act preempts a state law requiring timely payment of arbitration fees, which could significantly affect employment arbitration practices. The case arises from a dispute where a former employee sought to void arbitration after the employer paid arbitration fees after a thirty-day deadline imposed by a California statute. The outcome will clarify the interplay between federal arbitration standards and California’s efforts to regulate employment arbitration agreements and arbitration processes. The C...