California Law on Companies Timely Paying Arbitration Fees Valid

California Arbitration Act amendments imposing consequences on companies that don’t timely pay their share of employment or consumer arbitration fees are in step with and not preempted by the federal policy favoring the enforcement of agreements to arbitrate, a California appeals court ruled on a question of first impression.

At issue was an arbitration agreement and related handbook Sunny Gallo accepted when she was hired as a server for Wood Ranch USA Inc., which owns a chain of restaurants, the California Court of Appeal said.

Gallo sued alleging employment discrimination and retaliation, and Wood Ranch invoked the arbitration agreement to ...