What Justices' Arbitration Pact Pass Means For Calif. Cos.

By Steven Katz (June 17, 2020, 4:04 PM EDT) -- Now that the U.S. Supreme Court has declined to review the California Supreme Court's ruling in OTO LLC v. Kho,[1] California employers are going to need to review their arbitration programs.

In OTO, the California Supreme Court held, in the words of the dissenting justice:

[T]hat an arbitration agreement is substantively unconscionable — and therefore unenforceable — precisely because it prescribes procedures that, according to the majority, have been "carefully crafted to ensure fairness to both sides."[2] OTO breaks new ground in California arbitration law and could be interpreted to call into question the enforceability of many employer arbitration programs in...

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