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Litigation & Arbitration,
California Supreme Court

May 22, 2025

California high court weighs whether state law allows plaintiffs to get out of arbitration

During arguments, justices questioned Wednesday whether SB 707's strict penalties on employers that make late payments to neutrals are preempted by the Federal Arbitration Act.

State Supreme Court justices appeared somewhat skeptical Wednesday of whether a California law that allows a plaintiff who sued an Irvine company for retaliation and other claims can avoid arbitration if it failed to pay its fees to a JAMS arbitrator within 30 days.

While the court has generally favored plaintiffs in arbitration cases, the justices seemed sympathetic to arguments by attorneys for the employer, Golden State Foods Corp., and the Chamber of Commerce for the United St...

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