Arbitration Agreement Limited to Employment Claims Survives ‘Unconscionability’ Attack

Short summary

The Ninth Circuit ruled that an employment arbitration agreement limiting disputes to employment-related claims is enforceable and not unconscionable, distinguishing the case from recent California precedent. The court clarified that explicit scope limitations and inherent duration boundaries protect agreements from unconscionability challenges. Employers can strengthen their arbitration agreements by clearly specifying they cover only employment-related claims and related third parties.

• •Ninth Circuit upheld enforceability of employment arbitration agreements limited to employment-related claims
• •Explicit scope limitations protect agreements from unconscionability challenges under recent California precedent
• •Employers should clearly specify that arbitration agreements cover only employment-related claims and disputes

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