Washington Arbitration Agreements Are Failing Employers in Wage and Hour Cases

Short summary

Washington courts are invalidating employer arbitration agreements with class action waivers in wage and hour cases, creating significant class action exposure for employers. Over 750 employment class actions were filed in Washington in 2025, targeting healthcare, hospitality, and logistics industries. Washington applies a two-prong unconscionability test examining both procedural fairness (meaningful notice) and substantive fairness (one-sided terms), making agreements enforceable in California potentially unenforceable in Washington.

• •Washington courts disfavor class action waivers in employment arbitration agreements
• •Over 750 employment class actions filed in Washington in 2025
• •Two-prong unconscionability test examines procedural and substantive fairness

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