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Wage Claims Are Not Subject to Mandatory Arbitration

It was close, but the California Supreme Court in Sonic-Calabasas A, Inc. v Moreno (.pdf) has ruled in favor of employees in a decision holding that arbitration agreements do not preempt administrative wage claim procedures. An employee who has a wage claim against his or her employer, but is subject to an arbitration agreement, can go first through the Labor Commissioner’s administrative processes before the employer can require arbitration.