Arbitration Agreement Enforceable By Non-Signatory Alleged Joint-Employers

Seyfarth Synopsis: Employees who sign an arbitration agreement with one company cannot avoid arbitration with related defendant-companies by arguing they were not parties to the agreement. The California Court of Appeal held that claims against related defendant-companies that are closely tied to the arbitration agreement cannot not be separated for litigation. Edgar Gonzalez v. Nowhere Beverly Hills LLC, B328959.

The Facts

Edgar Gonzalez worked at a grocery store (Erewhon) operated by Nowhere Santa Monica LLC (Nowhere). As a condition of Gonzalez's employment, he signed an arbitration agreement with Nowhere.

Gonzalez sued Nowhere, and nine related companies (Nowhere Entities), alleging they acted as "joint employers," and were collectively responsible for wage and hour violations.