Wage Releases Don't Void Arbitration Pacts: Calif. Court

Law360, New York (June 20, 2012, 2:49 PM EDT) -- A California appeals court found Tuesday that threatening to withhold a worker's wages does not void arbitration provisions in employment contracts, reversing a lower court decision that released a former Adidas AG shoe designer from arbitrating claims against Pony International LLC.

The California Appeals Court for the Fourth Appellate District found that a San Diego trial court had erred in ruling that a state labor statute related to wage releases rendered unenforceable the arbitration provision contained in shoe designer Kyle Pulli’s employment contract with Pony....
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