Tesla Worker Properly Let Out of Last Minute Arbitration Pact

A female Tesla Inc. employee can pursue in court claims that she was subjected to sexual harassment while working at the automaker’s Fremont, Calif., factory.

The unpublished ruling Tuesday by the California Court of Appeal, First District, shows that the procedural unconscionability needed to invalidate an accepted arbitration pact can be established through the sequence of events. Jessica Barraza wasn’t made aware that Tesla wanted her to consent to arbitration of employment-related claims until after she resigned from her former job in order to work for the automaker, the court said.

By then, it was too late for Barraza to ...