California Supreme Court Ruling On 30-Day Arbitration Fee Payment Deadline

California Supreme Court Makes Major Ruling Regarding Businesses'/Employers' 30-Day Arbitration Fee Payment Deadline under the California Arbitration Act.

After several years of conflicting rulings from several Courts of Appeal, the California Supreme Court has largely settled the dispute as to how a trial court should interpret the California Arbitration Act's ("CAA") 30-day arbitration fee payment deadline for businesses/employers.

Specifically, in 2020 under Senate Bill 707, and modified by Senate Bills 762 in 2022 and 1756 in 2024, the California legislature enacted legislation which required businesses/employers, specifically those who draft agreements that require consumers/employees to arbitrate their claims, to pay any invoiced arbitration fees within 30 days of receipt of the invoice, or be subject to automatic removal from arbitration and mandatory sanctions.