Grocery Chain’s Arbitration Policy “Shocked” 9th Circuit Appeals Court
November 18, 2013
The arbitration policy for grocery chain Ralph’s is so disadvantageous for employees it “shocked the conscience,” and is unenforceable under California law, the Ninth Circuit Court of Appeals determined. In particular, the court noted as “unconscionable” provisions in the policy that would require an employee to split arbitrator’s fees down the middle and limit the arbitrator’s authority to award costs, and a one-sided method for determining what arbitrator could oversee the case. Ralph’s argued the policy was not mandatory for employment, as it used the word “please” where the application requested a signature. The court didn’t buy it, ruling that the agreement was offered on a take-it-or-leave it basis and “that Ralph’s asked nicely for a signature is irrelevant.”
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