Mandatory Arbitration Provision Struck Down By The Washington Supreme Court

Seyfarth Synopsis: The Washington Supreme Court refused to enforce a mandatory arbitration agreement that was contained within an Employee Handbook. Because it was not a separately signed agreement, the Court held that the employee had no opportunity to review it prior to employment and thus never agreed to arbitration. The Court also ruled the agreement was both procedurally and substantively unconscionable.

In Burnett v. Pagliacci Pizza, Inc., the Washington Supreme Court held that a pizza delivery driver was not required to arbitrate his wage and hour claims.  Burnett (the named plaintiff in a putative class action lawsuit) did not have notice of the arbitration provision when he signed his employment agreement with Pagliacci Pizza, Inc., because the arbitration agreement was included in a separate employment handbook.