California Employers Gain Relief In Arbitration Fee Deadline Ruling

In a highly anticipated decision, the California Supreme Court in Dana Hohenshelt v. Golden State Foods Corp. relieves some pressure for employers, holding that late payment of arbitration fees does not result in an automatic forfeiture of the employer's right to arbitrate. In recent years, employers faced strict interpretation of the application of California Code of Civil Procedure section 1281.98 ("section 1281.98"), whereby plaintiffs seized the opportunity to haul a claim back to court, even when the employer was just a day late to pay arbitration fees. Employers now have some relief, but should heed the California Supreme Court's holding on circumstances where waiver of arbitration is indeed appropriate.