March 2017

Arbitration clauses that bind the employee but not the employer: no problem, says the Ninth Circuit

Consider the following hypothetical: employer presents employee with an arbitration policy and demands her signature as a condition of receiving her usual annual bonus. The policy mandates binding arbitration for the vast majority of conceivable claims that the employee could bring. The policy allows for the employer, however, to pursue judicial resolution of "any claims by the Company that include a request for injunctive or equitable relief", including claims under certain restrictive covenants and intellectual property rights.

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