While employees continue to challenge binding arbitration agreements with gusto, California courts have shown a consistent willingness to enforce agreements where fundamental fairness exists. In Serpa v. California Surety Investigations, Inc., No. B237363 (Cal. Ct. App. Apr. 19, 2013), a California Court of Appeal reversed a trial court order denying the employer’s motion to compel arbitration. Even though the arbitration agreement itself was not mutual because it required only the employee to arbitrate disputes, the employer’s handbook — which was incorporated into the arbitration agreement — applied the arbitration policy to the employer and employees alike. Therefore, the Court held the handbook “salvaged” the arbitration agreement. It also rejected the argument that the employer could unilaterally change the handbook policy at any time, finding that the implied covenant of good faith and fair dealing limited the employer’s right to alter the agreement unilaterally and defeated the employee’s illusory promise and unconscionability theories. Click here for more information.
