Legal Question in Employment Law in California

Arbitration Agreement and Backround Check

All of us are at will employees and understand that at any point can get fired. Our concern is within this book they have included and ''Alternative Dispute Resolution Program'', stating that we basically have to go to an outside arbitrator to solve any matter. Hence not suing the company. In the end they are making us sign a ''Arbitration Agreement''. Upon signing this we are giving up our rights to sue the company. Is this legal? What are the repercussions if I do not wish to sign this? My next question related to the above with regards workers comp claims. If one were to get injured at work and decide they need medial care for a on the job accident can they come after the company? or because they signed the Arbitration agreement they forgo those rights? We feel that by signing this agreement we are giving up 1st amendment rights. My final question relates to background checks. Our handbook states ''during employment with XXX and thereafter they can request an investigative consumer report or investigation agency concerning information, mode of living, working habits and credit checks. Why do they need credit checks? Is it legal to continue these checks after one no longer works for the company? Isn't this invasion of one's privacy?


Asked on 6/30/03, 7:25 pm

2 Answers from Attorneys

Re: Arbitration Agreement and Backround Check

Generally an employer can mandate that employees submit almost all claims to arbitration. There may be an exception, however, depending on the language of the arbitration agreement.

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Answered on 7/02/03, 4:31 pm
Robert Miller Robert L. Miller & Associates, A Law Corporation

Re: Arbitration Agreement and Backround Check

Thank you for your posting.

You can, via contract, give up your right to have any claims heard in court, and the California Supreme Court has almost consistently decided this to be legal, except in cases where the forcing of the signing of an arbitration clause is heavy-handed and not truly an "agreement".

By law, you cannot sign away your rights to worker's compensation benefits. These benefits cannot strictly be pursued in court anyway, as there is a separate worker's compensation appeals process, but you always have the right to file a worker's compensation claim for any employees injured on the job.

I don't agree that this is necessarily a first amendment issue (at all) or that you are having your privacy invaded, so long as you agree to the contract provision.

I hope that this information helps, but if you have further questions, want more information, or feel that you need legal representation, please feel free to email me directly at [email protected]. I am happy to help in any way that I can.

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Answered on 7/01/03, 6:06 pm


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