In a recent Law360 article, Thompson Coburn partner Benjamin Runge examined the uncertainty many California employers face regarding whether the arbitration agreements they require employees to sign will be upheld in court. He explained that the U.S. Court of Appeals for the Ninth Circuit’s June 23 decision in Cocom v. ABM Aviation Inc. offers encouraging guidance, signaling that carefully drafted arbitration agreements remain enforceable.
Discussing the case, Ben wrote: “ABM Aviation provides janitorial services at airports, and a former janitor filed a proposed class action claiming wage and hour violations. When he was hired, he signed a mutual arbitration agreement promising to resolve employment disputes through arbitration rather than in court.”
He also highlighted key lessons for employers and their counsel, noting that favorable rulings such as Cocom and Ayala-Ventura should not lead to complacency. “Cocom and Ayala-Ventura are good news, but they are not a reason to relax,” he wrote. “The agreements that survived did so because they were written and read as employment-focused.”
Emphasizing the broader significance of the decisions, Ben concluded: “The last few years have made some employers wonder whether workplace arbitration agreements were still worth the paper they were printed on. Cocom v. ABM Aviation, together with Ayala-Ventura, is a strong signal that the answer is yes.”
Read the full article here.
