Employer’s Arbitration Policy Unconscionable, Unenforceable under California Law, Ninth Circuit Rules

A grocery store’s arbitration policy was so one-sided that it “shocked the conscience” under California law and was unenforceable, the U.S. Court of Appeals for the Ninth Circuit has ruled, citing in part a provision requiring employees to split the arbitrator’s fees down the middle. Chavarria v. Ralphs Grocery Co., No. 11-56673 (9th Cir. Oct. 28, 2013). The Court affirmed the denial of the employer’s motion to compel arbitration and returned the case to the district court for further proceedings.