Dov Charney Can't Arbitrate Ex-Worker's Sex Harassment Case

By Bonnie Eslinger (May 11, 2016, 6:04 PM EDT) -- A California judge on Wednesday denied a bid from former American Apparel CEO and founder Dov Charney to force an ex-employee to arbitrate her sexual harassment and wrongful termination claims, saying an arbitration agreement required the parties to first resolve the dispute through mediation.

In rejecting Charney's motion to compel arbitration, Los Angeles Superior Court Judge Debre Katz Weintraub noted that an arbitration agreement signed by plaintiff Stephanie Kalinowski when she first began working for American Apparel, and its former brand Oak, required mediation before any employment dispute could be submitted for arbitration.

On July 7, 2015, five months before filing...

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